Plus, Tennessee is a landlord-friendly state, which makes it easier to manage properties compared to more restrictive areas.There’s also a growing community of out-of-state investors looking at Memphis because it offers a great balance of affordability and return on investment.

$1,200,000 purchase price and the balance for closing costs, repairs and reserves.There are ways to obtain financing in Mexico, but most sellers are expecting cash deals.

Couple of details that would help the community here: what's your estimated value of house "A", the loan balance, and monthly rent?

It sounds like you're looking to balance immediate cash flow with long-term equity growth, which is a solid strategy.A few ideas to consider:Local Networking: Connect with other investors in your area or in Milwaukee who might have deals they can't take on themselves.

Multifamily investors usually look to balance risk and return - usually picking either B or C neighborhoods to buy rentals in.

Given your limited cash and high DTI, refinancing after boosting rents might balance risk and reward best.

Assuming the bank has the loan on their balance sheet (not resold), would they want to call it due if the interest rates only went up by 1.5% since the time of closing? 

If you've owned for at least that, you're good.If you do a rate/term refinance, where just the hard money balance is paid off, rates will be much better.

Whereas for me (at this stage of my investing career and my personal life) if a project is profitable and supports my ability to live somewhere with better cost of living and quality of life, the balance between the two can be just as valuable. 

In evaluating seller financed notes, there is always a balance between redeeming and non-redeeming factors.