If you're open to $120-180k, I would recommend looking into Columbus Ohio as it does have much better growth and appreciation potential than Cleveland and Dayton. 

Nothing illegal about doing that, but if caught, the lender may call the loan due and if you don't correct the situation or pay the loan off, they willstart mortgage foreclosure.3) You could also go the HELOC route to tap the equity in the home, but the 12-month owner-occupancy will also apply AND the interest rate on the HELOC will fluctuate with the Fed Fund Rate.4) You could do a cashout refi as an investment property, but that will be at an interest rate 0.5-1% higher than owner-occupied rate.Suggest you meet with 2-3 lenders to explore your options about the above.Once you have access to funds, recommend you buy a 2-4 unit with 20-25% down. - You can buy owner-occupied, live in one unit, and fix up and rent the other unit(s).- If you're handy, recommend buying a property in the worst condition you can tolerate.

Any recommendations of a good realtor who understands the needs of an out-of-state investor who works the Lorain area of OH would greatly be appreciated.

Glad I didn't follow the guideline that book quoted above. 

What would you recommend?

I would recommend looking at a loan with a short prepayment penalty if looking to get cash out, that way you can refinance again if rates drop again in the near future. 

And FHFA is currently drafting a recommended approach to the termination of the conservatorship, for Treasury review, which they began before this Administration took power.A return to independence for Fannie and Freddie could promote a healthier mortgage market and lower costs for consumers.

Here's my plan that I have done extensive research on and have already been talking with an expeditor (I recommend using one if your doing one of these ADU/JADU projects right now since the city is backed up and honestly confused).  1.

Investing in Wisconsin and Illinois is a great move—both states offer solid opportunities for multifamily and single-family rentals.If you’re looking to connect with like-minded investors or agents, I’d recommend joining local real estate meetups or REIA groups in the areas you’re targeting.

If you are looking for more appreciation and can afford to cover a few hundred dollars a month of negative cash flow then I'd recommend looking at Gilbert.