Of course if you are squeeky clean, high income, low debt buy or refi your rental loan with a bank/fannie loan. 

The fact that there are so many rules, regs, and the eventual elimination of STRs all over the valley makes anywhere that allows them attractive to me.

Hey guys I’m looking for advice on my situationI have a rental property I’ll be finishing renovations on in a month or so I paid for it cash and own it free and clear I’m looking to refinance it but I’m also in the process of rebuilding my credit (part of the reason to refinance is to pay off some debts)how can I refinance this house with bad credit I’ve been doing some research and non-recourse refinancing at a low LTV sounds like a option but I don’t know any lenders who specialize in these?

After doing a few more wholesale deals to gather experience, I plan to buy a house hack to eliminate rent and start out my portfolio as I continue wholesaling and start investing in more rental properties.

You may want to continue what you're currently doing or start small with the business rather than incurring debt and jumping in the deep end.All the bestStephanie

BUT option 1 my debt to equity ratio will be lower, or bringing it all the way back to my question, less risky in theory.

With that said, I'm not your lawyer.In the world of capital, your capital stack will be composed of debt or equity or a hybrid instrument (a bit of both). 

He does not believe in accumulating debt or taking away from his cash flow.

For the rest, it comes down to your preferences, but if it were me, I would cashout refi the duplex owned outright because debt is so cheap right now.

I recommend a solid year to be safe, eliminate most risk, and make your CPA at ease but shorter time due to circumstances are ok.