This is due to bonus depreciation which allows taxpayers to deduct 40% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

Your best/safest bet would be a regular lease combined with an option to purchase.

A and B neighborhoods typically don’t produce much cash flow and are more of an appreciation play—something the city has been seeing quite a bit of over the past decade.

Not to mention how these properties don't appreciate the same as a regular home. what are your thoughts? 

I found a property in my area that would produce decent cash flow and appreciation; however, I would have to use funds from a HELOC on a different rental property for the down payment.

Be sure to check with your lender to confirm their specific criteria regarding the property's condition.In short, fixer-uppers can qualify for DSCR loans, but the property either needs to be producing rental income or have a plan to do so after renovations.

With the exception of some small markets in the Southeast, places like Cleveland are the only major metro areas where a regular investor can find cash-flowing assets with a mix of appreciation. 

I did buy a website which was expensive and produced nothing, still trying to decide what to do with that sunk cost.

A $240k loan amount on a $249k purchase price seems crazy and I'd never expect to produce any net positive cash flow doing this.How are you calculating your property taxes?

This forum is super helpful too so I try to regularly review what’s going on and be as helpful as possible.