The rust belt has been wonderful for out of state seeking better rental property returns due to the lower purchase prices and cashflow potential. 

Generally speaking, I think tech like this stuff and social media have lowered the barrier to entry, allowing people to take risks they dont fully understand, whether wholesaling. flipping, lending, etc.

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

There's usually a good reason why the entry points are lower.

You are generally going to either buy it at 95% of value or what is owed, which ever is lower. 

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

The house is in Woodforest though so rentability might be lower as well increasing vacancy risk due to high rental costs. 

Lower property taxes, affordable housing compared to LA (CA buyers are usually cash buyers because what they net from their smaller home in CA can get them a bigger home here, often covered by what they net from their CA sale), allergies (smog), and politics. 

Umbrella insurance provides substantial liability protection at a lower cost and avoids the administrative complexities of managing an LLC.

A 4 bedroom would have you competing with larger condos or townhouses with pools, a much lower rate of return.