Some clients who are more aggressive will invest in B-/C+/C class areas in Dayton 1-4 units and get A LOT of cash flow, but incur risks of evictions, expensive turnover renovations, and general C class neighborhood headaches.What are you looking to achieve?

The Homeowners Insurance will include Builder's Risk. 

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

It hedges any downside risk and increases cash flow.

Wholesaling is risky, because there are a ton of bad players out there, and so most brokerages don't even allow it because there is so much risk, and the principle broker is risking their livelyhood. 

Personal Circumstances: Consider your comfort level with debt and risk.

While I understand the risks associated with investing in areas unfamiliar to you, my budget forces me to do so.

Of course, growing has inherent risks involved.

This will allow you to mitigate risk on the first property but also allow you to do a cash out refi on the second, so now you have access to tax free cash that you can do with whatever you please.

I’ve been working with several lenders for DSCR loans, but I’ve found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate.