Licensing and financing can be difficult.

Combined income is $182k. no debt outside our mortgage ($350k balance at 2.8%, $2900/month) and one car ($25k at 6%).

At the moment my ultimate goal is to lower the payment so when I convert this property to a rental eventually it is in a better spot to cash flow.Current Loan - 30 yr loan on a condo starting July 2023 Remaining balance - 365kRate - 7.25% Payment - 2625 Proposed Refi - 30 yr loan starting December 2025 (90% LTV)New Loan Amount (escrowed) - 376.4kClosing costs - 4584Rate - 6.35% Payment - 2348 Savings 277/m

Without knowing the age and condition of the property, as well as number of units and whether there is currently cash flow coming from the property, it's difficult to answer your questions too specifically. 

Before each refi, pay down revolving balances and avoid opening new personal accounts.

You do not pay this money to anyone, they just want to confirm you have it.You have to currently own a primary residence.There is a prepayment penalty and they vary but the most common is 3% of whatever the balance is, will be calculated and added to the payoff if you payoff prior to 3 years."

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

In real estate, though, it’s a bit of a balancing act.

If they are paying the full balance within the month, I would not be terribly worried2.

I am generally a proponent of purchasing investment real estate in an LLC, but its a balanced approach and FHA financed real estate is the exception where I always urge investors to review their eligibility.