Rates are hight right now and if your primary residents has a great rate the HELOC normally is the smarter play as long as your have repayment plan that allows you to risen and repeat.  

A crash will not happen due to inventory(local-regional factors at play), but you're pricing for general correction upon the eve of the slow and doomy Q4.

This is a DSCR ratio of 2.01 and an annual cash on cash return of about 34% (30k cash invested) This would be a good long term play.  

Thanks for your replies.Bob P- you said "You will become involved in a lawsuit if you proceed"  How do you think that would play out?

The appreciation play is just hard to come by in the SW part of AR. 

Playing with some DTI calculators I’ll be hovering around 50%.

Sure, they play pot odds and ensure they only take on good cases.So... it depends on your W-2 hours spent... and your tolerance for pain (risk).

For me, if I had $1M I would go the appreciation play and look to buy a property in an A area that will appreciate over the next decade.

I would highly recommend bringing in an advisor or broker with specific experience and knowledge in this asset class.I have seen many of these parks trade hands on a handshake and a dream, however, you could be taking a huge gamble if you don't get microscopic on the front end.

We do not suspect foul play because apparently that tenant's relatives have reported to the remaining tenants that the MIA tenant has moved in with another relative (but did not give that MIA tenant's new contact information).