You may find cash flowing properties in C or D neighborhoods but it would potentially come with lots of property management headaches. 

1) Most of the properties in Lehigh Acres seems to be C or B - I might have an issue with tenants (eviction, on-time payments, etc).

Sending a Class A handyman to a Class C or D property will waste your money.

If it wouldn't cash flow as a LTR, then don't buy it as a STR unless you are willing to bet on regulations staying unchanged.

BTW: the only 2% properties around here are in C or D class areas, where I would not want to live or own.

Well, I just did something that I would love to sort of repeat in another C or D neighborhood, with a small multifamily (10-12 units), that are all vacant:I created a creative community on one block. 6 duplexes.

Sending a Class A handyman to a Class C or D property will waste your money.

Sending a Class A handyman to a Class C or D property will waste your money.

Not sure what the market is like in your area but I would not bet on appreciation at this point in our real estate cycle...If he decides to call the balloon payment, you will be forced to find emergency financing or lose the property and everything you put into it. 

If I did a COR at the today's current rates do you think it would average out to be the same if I did the Heloc?