Again PMI offers the lower rate because its less risky and offers insurance to the bank.So when you sell your current home try and keep as much as possible and avoid an "All Cash" offer.

When they do, expect much lower leverage.It sounds like you haven’t purchased the land yet.

Overall sale prices of homes are lower than most areas so that 100-200K can be multiple down payment on investment properties.

Say, 3 month later, I decide to do a cash out refinance of the replacement property at 75% LTV because the rate is lower. 

In most Ohio markets, investors can achieve solid cashflow with much lower initial capital investment.

They're working class or in lower income areas. 

.- get into real estate with a lower rate and lesser percentage down payment.

Say, 3 month later, I decide to do a cash out refinance of the replacement property at 75% LTV because the rate is lower.

By leveraging real estate in areas with lower entry points and higher returns, you can grow your wealth more effectively without the heavy financial burden of a luxury home.

I’ve been in a similar situation, and I think the idea of buying in lower-cost areas to renovate and rent out is a great play.