With friends who invest in the area and a good property management company, I believe you should look to purchase now.And as others have said, find a suitable property, run the numbers, and take action.I wish you all the best.

I need to find something suitable for my kids and I've tried two different lenders now to no avail.

Based on what I am seeing, $500k is quite a reasonable price for a 4~5 bedroom house in good condition, in an area suitable for STR. 

You'll do fine if you have a suitable property with the proper updates.

Based on the current condition of the market, this is the best/ most suitable deal I can find within my criteria. 

I am content with breakeven, as my main objective for this specific property is to pay down the mortgage and hope for appreciation.I will look into HELOC, which seems more suitable for short term loans.I haven't looked into Pennsylvania yet.  

Personally if she is a good tennant i would try and find a suitable property that is more affordable if i were to evict her. 

I talk to investors on a weekly basis who are having success in LB.Belmont Heights, Los Altos, Alamitos Heights, California Heights, Bixby Knolls, and Lakewood Village are all neighborhoods were you can find the "cookie cutter" type of flips that would be suitable for a newbie. 

And even then, they won't get a judgement for any money because their rental suitability was dated after all the rent was due.  

What do you think would be most suitable for your lifestyle?