I was thinking about getting the property, renovating it, and then cashing out 80% of the ARV to get some of the money back.

I'm still in the process of growing my portfolio, but have heard others 1031 all their smaller properties into a larger building and have a property management company manage, OR, set up a seller financing deal with another buyer that gives you the cash flow you desire. 

John Hickey renovations look great!

It will save you a ton of money upfront and you'll gain the experience to upgrade to larger deals.  

Private (hard) money might help with renovation but will be pricey.

@Jay Fayz for SFR (1-4 family) Classifications are mostly opinion-based.Not aware of anyone tracking eviction rates, except Evictions Lab nonprofit that doesn't like landlords.Here's some info that might helpt:---------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Also, for people who wish to pursue larger real estate ventures, you don't personally need to be able to analyze a deal, and can possibly partner with someone who does or even hire an underwriter.

If the property is vacant, you will attract a larger pool of buyers as not everyone looking for a house wants to use it as a rental. 

(larger would require fire sprinklers). 

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.