Many judges would feel you got paid even if no cash was sent to you.I could see this potentially working on a higher-end property that it in excellent condition with a Grade A tenant.  

My first reaction to your post is if you're purchasing assets that are throwing off positive cash but your DTI is going up then it may be time to re-evaluate the type of assets or the expenses associated with those assets.  2.

So the idea of doing this all from afar is a bit daunting, however, I know the most important thing here will be to create a great team and outsource as much as possible.I have set my sights on a couple of different markets being in the Southeast and the Midwest; these markets seem to provide the cash flow I am initially interested in generating to value add to the properties I purchase.

I just don't think you can expect a property to cash flow when you're putting 3.5% down.

Which one is more appealing - continuing to own the house or the security of that much cash/liquidity?

Best I can tell all in all we about 3X cash on cash over 5 years.infil lots depending on lot we could double our money in 9 to 12 months cash on cash.. so on and so forth.

Our options are to put the money the stock market, buy a multi-unit property, by an established business, payoff the 3 rentals for cash flow, or get into hard money lending.

However, most of these properties still cash flow well (or enough to cover PITI). 

No reserves and no cash flow = capital infusion from investors and/or return property to bank.  

Or just any suggestions for the best bang for your buck areas that offer at least a little cash flow and appreciation ?