That will come naturally if he sees interest or offers up alternative ideas.  

Accept mediocrity only if the alternative is disaster. 

This option intrigues because I have heard a few people on the podcasts say that they have rented to buy I just feel like the other one is probably the safer bet. 

In general, a lower cap rate indicates there is less risk associated with the investment (due to increased demand) and a higher cap rates can be associated with higher risk alternatives."

@Blair Boan I do not have an answer to your question of which choice you should make, rather I would like to persuade you to an alternative path.  

It's can also safer to diversify your investment properties across the country.

The bank that owns my mortgage will not do a HELOC in my state so I'm looking at the best alternative. 

I suspect your vacancy rates will be higher based on section 8 C class property.You should not count on refinancing at 4% based on future expectations and would be safer anticipating rates at 6% or more.  

You can find safer returns closer to 8% to 10%.  

Others will suggest alternate paths but all require more work and more time.