-------------------------------------------------------------------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?

The more information that you have out there the easier it is for people to find you, if you want them to find you.I almost everyday wear my "Rick Buys Houses" shirts with my phone number on it. 

@Dennis Bragg, how did you factor improvements and market appreciation into the buy-back price?

If she went to buy a house and applied for a mortgage, I think the lender would say the same thing aka you don't qualify until you get this removed from the credit report.

He can't 'buy her out' as he does not have that much cash liquid.

when i buy dirt and do the horizontal these deals can take 2 to 3 years 2 years to get through approvals and horizontal  12 to 18 months to build and sell.. thats a 20 to 25 lot project.

Highly recommend you DM @Samuel Eddinger and buy him lunch to pick his brain!

Buy a 2-4 unit, close to home.

If you want to manage your own properties, I would highly recommend buying within an hour of your primary.

I would suggest you do both of what you suggest - meaning get either a new mortgage (more conservative route) or HELOC on the townhome and use those funds to buy your next investment property.