And the income approach is not typically reliable, since 2-4 unit property rents typically vary widely, depending on many factors, and the grm's (gross rent multipliers) will reflect that, therefore, causing a wide range in values.

I like option #2 but you might not be able to buy too many homes with just $75,000.You might be able to get into some decent properties in the $200,000 range in those cities which would require 20% down which is $40,000.If you had $25,000 ontop of the $75,000 HELOC, you might be afford the downpayment, closing costs and a small rehab budget.Best of luck!

What is your price range?

I have a lot of under market properties for purchase in that price range and under.

The Rise of Mid-Term Rentals:Mid-term rentals, which typically range from one to six months, are gaining traction for several compelling reasons.

So look around, interview other STR owners so that you have sufficient information.

Hi, you can find a fourplex in that price range in Kansas City area

@Ricardo Fainsilber In my experience, servicers range from mediocre to terrible.

Hi Rob,If you believe the HELOC will be sufficient for the purchase & rehab, it could make sense to use the HELOC given the interest rate is lower than a hard money. 

As long expectations are managed, either route should be sufficient.