The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.Both Property Classand Tenant Class affect what type of contractors, handymen and property management companies will work on a property.If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?

They have solid lease agreements designed to protect you, your income, and your property.Property Maintenance & Repairs: They have a network of vetted, licensed, insured contractors that can respond quickly and do the job right the first time.Minimizing Vacancy & Maximizing Occupancy: Their marketing reduces vacancy time.

We considered using the cash out for buying a new multi unit property and using the greater income from that one to pay the remainder on this house  monthly but obviously that's not a great idea.  

@Hiyun Park only experienced investors can DIY everything in Class C Midwest areas like Detroit, Cleveland, St Louis, etc.Hopefully the info below will help you:-----------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

Would it be smart to tack on another 203k in the future assuming my income covers payments?

@Leslie Beia what do YOU think $30k income would come fromHow many doors?

This rental income may not be included in effective income. 

My goal is within 5-10 years to be making a monthly profit that matches our household income (currently 6.5k USD monthly but will likely increase overtime).

How long would it take for my STR income to pay for $70k in roof replacement?