Some investors thrive in this type of market knowing they will have strong equity growth as regulation tends to lead to fewer players, fewer available rentals and therefore higher prices (rents and property value).

A cash out refinance puts the cash into your bank and can be used as PITI reserves or as an asset.A Heloc becomes another trade line on credit which can potentially cause a higher DTI and lower your chances for future approvals.

Prime rental market, good quality tenants because of higher asking rent Lessons learned?

However, I've personally stopped taking Section 8 tenants because they ultimately resulted in lower rent income, a higher rate of lease violations and problems, and increased costs at turnover.It also depends on your market.

Additionally, you might want to consider working closely with your local Public Housing Authority (PHA) to screen applicants more thoroughly or negotiate higher payment standards for better tenant placements.PS: Something that may help you: Baltimore recently passed the Tenant Opportunity to Purchase Act (TOPA), which aims to strengthen renters' rights and provide better engagement between landlords and tenants.

Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders.

The issue that I'm facing now is whether I want to pull it out against one of my rentals or on my primary.I have found a bank that will allow me to borrow as a second lien on rentals but their rates are higher than what I could get when just doing it against my primary.What I'm most worried about is what happens in a worst case scenario, should something drastic happen in the market.From what I understand, using the money against a rental doesn't necessarily provide much more of a safety blanket in case things hit the fan because if, somehow, the HELOC lender can't recover their money, you'll get sued anyways.

Hard Money lenders on the other hand (Such as Kiavi, Lima One, Easy Street, Etc...) will be able to finance at a higher leverage and may have some aggressive exposure limits (Higher LTARVs, LTC, and lower borrower requirements).

What  is the DSCR Requirement - Look for a 1 to 1 ratio, anything higher like 1.2x might force you to put more money down. 

The higher costs are offset by the speed and flexibility of the financing.