In my market it seems the higher-quality renters want interaction.

Part of that you can justify because of the necessary repairs, but overall higher price points appreciate differently.The median home price has basically doubled in Milwaukee from about 160k to 320k in the last 10 years.

Regarding #2, we would be looking at beachfront areas in higher traffic vacation areas (Hawaii).

They’re not standard where I live, but prospective tenants are thrilled to hen my units have them and don’t mind paying higher rent.

The interest rate on a HELOC is usually higher than a normal 1st lien mortgage, but I am seeing some cases where HELOCs are in the 6's and 7's (where credit score is high and LTV is 65% or lower), which make them pretty comparable. 

@Brandon StainesOption 1: do nothing you stay on mortgage and good is you still own 50% of house but bad is if she defaults then it hurts your credit tooOption 2: have her buy you out but that would require a new mortgage at a much higher rateNot much else you can do.

With your ARV it looks like you have plenty of room even if the budget is a bit higher than 125K.

Lenders have to pay their loan officers through a loan officer compensation plan along with the "Branch bucket".Lenders have offices where the manager has an override and then a P&L so they have to charge more either through points or higher rates.

More work but higher pay.

Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders.