Also there is no restriction on acquiring conventional loan on primary residence even if you have maxed out on conventional loan for rentals.

@Paola Astrid, if so be the case, refi to a conventional investment loan. 

Keep the loan local.  

From a $ perspective you get the same amount of appreciation, depreciation, loan pay down, but here you have cashflow and if if a tenant moves out, you are only 50% vacant instead of 100% vacant.- Generally the same logic applies as above.  

Also looking to take a loan out on this paid off unit.

While this might not fetch the top dollar, it could result in a quicker sale at a reasonable price.Consider Renovation Loan Options: If you believe the house has significant potential value once fixed up, exploring renovation loan options like an FHA 203(k) could be an option.

Buy, even if you don't plan on staying in that 1st house in Cleveland permanently you can just use an FHA loan live there for a year and turn it into a rental afterwards.

Bank loan How did you add value to the deal?

Bank loan How did you add value to the deal?

And the "hook" is that it's paying 12%+ interest distribution plus depending amount LOANED (one may say invested in a note but again, if a note is a loan, it's not investing is it, it's a loan, a loan is a loan is a loan).