I totally agree with the idea that local markets offer better value in the long run that cheaper out-of-state markets.Finally, Just because an experienced property manager would not do a house hack or purchase a small multifamily property does not mean it would not be a good fit for you and your situation.

I tend to lean toward my clients getting some experience owning a standalone rental property prior to buying a live-in multiunit, but at the end of the day, every situation is different. 

Would you recommend the route of a first lien HELOC based on the above situation and information?

That could change the situation, so check with your CPA about that.If you want more details about depreciation and cost segregation, check out the IRS guide on rental property deductions: IRS Rental Property Tax Guide.Hope this helps!

Sorry to hear you're going through that situation.

I have an interesting situation with a now former tenant that has come up.  

That said, the other agent and I frequently reduce our commissions on these deals to make them work and, even if the agents don't, the seller would still be getting around 3% at closing with a 10% down payment which, to me, could be a win-win depending on their situation.  

Umbrella insurance is usually a very large policy of $1 million or more, extending your coverage for larger situations.

Would love to hear thoughts from others who have been in a similar situation!

After stopping by to see and knocking on the door, no answer to get in contact of the owner, I looked up to find the home is now 4  years delinquent on taxes.The house is needing much work unfortunately and with taxes being delinquent, the owner may not have the funds to rectify any of the situation.