Mortgage rates and PMLs are 8-12% plus points right now so the deal has to be a low enough entry. 

Install low profile LED lights or wall sconces.If this is an investment property you need to be thinking about returns.

So making it my primary is a low bar.   

That's a very low amount given it's a commercial property.

With HML at least you in theory can vet the property and keep a low LTV to ensure you can be made whole.

@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?

@Stephen FlemingFrom my experience working with over 400 investors, your strategy of leveraging a low mortgage rate, tapping into home equity, and diversifying with a short-term rental (STR) in Northern Michigan is well thought out.

Helps you stand apart from similar 4 bedroom homes and if you choose to pursue a rent by the room strategy in can create additional cash flow.

Really interested in investing in this market and would accept a relatively low return (or even a break even scenario because i believe in continued appreciation potential here). 

We'll certainly want to keep the property tax basis as low as possible if we hold it.