@Chris Mahoo many new investors don't take the time to properly understand RE investing.1) Many are using approaches from 2010-2018 when Class A property prices were so low from the Great RE Crash that an investor could cashflow and get pretty easy Class A tenants to manage.2) If you look at what investors were doing before 2008-2010, most were buying Class B & C rentals.To make it worth while, an investor either needs to Fix & Flip or invest & hold rentals for 10+ years.- Over a 10 year period cashflow will increase as rents increase (rents typically rise faster than property taxes, insurance, etc.)- The property should be appreciating, if purchased in a good location, increasing the owner's equity/wealth.- Rents will be paying the mortgage off, increasing the owner's equity/wealth.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

There are also several funds out there that provide high single digit yields that are low risk. 

You may have an advantage since there is very low deal volume in your area, and may have multiple bidders.Good luckGino

I don't think enough people consider this aspect.Selling Stock: Selling part of your portfolio could work, but the 15% capital gains tax might make this an expensive choice unless the stock has underperformed or you’re diversifying away from riskier investments.HELOC: Using a HELOC on an existing property is a flexible and relatively low-cost option.

I also recommend buying in a B-class neighborhood so you can learn the ropes with an easier tenant class.

In neighborhood it is very important to present your self to the home owner next to you, this helps a lot to prevent misunderstandings. also this shows your professionalism.

But this comes with pockets of C/D neighborhoods, and higher potential for headaches;  in addition, appreciation in these zips has probably maxed out for a while.

That's not worth 15% of the job.Another thing to consider is that some managers will charge low management fees and then add maintenance fees to bring in more income, while others charge high, all-inclusive management fees.

Your estimate seems low, but even at that cost, it will not add that value.  

Can you tell us what your fees are for this loan to achieve such a low rate?