If Allstate is not offering proper coverage (stress the if) and you can get proper coverage in the surplus lines market you would want to do that. 

I like the idea of a newer 4plex but they just don’t exist in my market.

Im not expert but Ive took out a heloc and dragged on going on my advise and it suckedHi @Mario Morales, There are 2 things I would pay attention to in the scenario you describe. (1) Most cash out loans are limited to 75% -80% LTV meaning you wouldn't be able to get all of your cash back out. (2) The interest rates I see in the market are closer than what you've listed.

Is there anyone in your local market you could take out to lunch who does flips?

I will research my market to find out what's required for my state.

There is no one size fits all answer for this question, market to market, and property to property are all different. 

These cities are the well known, sub 100k markets in the US.

We always run a market analysis before making a purchase for ourselves or our investors.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Dubai’s real estate market never seems to slow down, and that’s what keeps it so intriguing.