@Zach Edelman Lexington has a decent amount of STR regulations now with more on the way.

Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount. 

I generally look for the areas of a market that have a large amount of available rentals on sites like Zillow or Redfin that are closer in dollar amount to the FMRs for that county.

I have a considerable amount of equity in the house (HCOL area), and after the renovations are complete we are looking to sell the house in order to use the proceeds to kick start the next venture (flipping).  

Welcome to the community and be ready for a huge amount of information at your finger tips.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Mention all of the pros of the property (mechanicals, rent amounts, location, etc). 

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

However, you have to take in consideration the amount that would cost you to use that money plus the new loan on the multifamily.

Will my IDR plan amount be what is factored into my DTI versus a percentage of my loans?