Generally speaking high priced RE doesn't make sense for LTR. 

Although getting a Heloc for the cash flow does make sense. 

This might make sense depending on size of rentals and # of LLCs that are required to file - need more info to help.  

Tenant must prove the following:1) they are unemployed2) if unemployed, they must show their unemployment insurance statements and small business protection statements (because a lot of them are getting more money in unemployment and some also get the small business protection paychecks from their employers)3) if so, they must pay 50% in rent each month or should get kicked out within a month; heck 50% of unemployment check should go directly to the landlord or mortgage company so don't let the tenant be the one to decide if they want to pay out or not4) but with the money, they should voluntarily move into a smaller, cheaper part of town instead of staying put (common sense is that when you lose your job, you send out resumes looking for another job while collecting unemployment and also looking to move and downsize to a smaller, cheaper place); you don't stay put and be a squatter5) they must show their bank statements (checking, savings, retirement accounts, etc.); any money they have in there must go towards paying 50% of rent as well6) if they are short on all the above, they must move in with family / relative / brother / sister / parent, etc.7) the only situation when they have a right to be a squatter is when they can prove that they will be homeless if evicted and have no one to turn to and no money in the bank (but whoever gets to this situation is a lousy manager of money and don't know how to live within their means while employed)

Here's where I struggle to comprehend and make it make sense: So when I go to cash out refinance, the property is appraised at a higher value from market appreciation and rehab.

I am looking to invest in properties built in the 1920-1930s and wanted to know if it makes sense to do so?  

Did you have any ratios or % gross revenue costs to just get some guidelines on whether the property makes sense as an str? 

While the numbers they provide might make sense under specific conditions, it’s always a good idea to apply a more conservative approach to ensure you’re prepared for the unexpected.For vacancy, the tenancy averages they’ve shared (3.8 years for C class and 6+ years for B- class) aren’t out of the realm of possibility, but I’d treat them with caution.

Jersey City is hot right now but like I tell my clients the majority of the time I can find them deals that make more sense in Essex County but that depends on the client and what their needs are along with their comfort level. 

Chris,Thank you for the response, that makes sense.