Do these generally have good cash flows?

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

In Dayton, I find most of my clients like A/B class 1-4 units because they can actually cash flow AND be in great areas.

If I have some cash do you recommend clearing the loan or invest instead for next property with proper planning ? 

Quote from @Ricardo Lemus: For a newer investor, a good investment is a property that pays for all expenses with some cash left over.

I’m considering doing a cash-out refinance, not sure what the best options is , to use the rental property or the rehab property.

Purchase price: $530,000 Cash invested: $100,000 My journey into short-term rentals began after years of investing in long-term properties, but it was a podcast that opened my eyes to the incredible potential returns of STRs.

I'd keep the rental and by no means refinance it to take cash out. 

Purchase price: $2,000 Cash invested: $60,000 Sale price: $91,000 Bought this one from WCLB with the intention to fix it and sell on market to homeowner.

Using a HELOC to fund your first rental can be a great strategy, especially if you want to preserve your cash for other expenses or unexpected costs.