you're going to be INvesting for the first few years... rental income from the property isn't going to start paying back what you spend in closing costs, rent ready costs, stabilization costs, down payment, etc. for several years at a minimum.hope this helps - not trying to be negative, just realistic. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

With DSTs you need to make sure that the various fees don’t negate your profits.

Just remember: most negative reviews are written by problematic tenants.

I still handle all the leasing aspects myself.

Henry on the Teak wood and lumber aspect.. what is the growing cycle for the hardwoods to become merch ? 

But yes, for LTR you will be negative most likely.

Perhaps your rents are just higher, but I wouldn’t suggest getting into a negatively cash flowing property especially for your first one.

Now having said all that, I do wish I could find a really good Lease Oyions program to learn from...I did Purchase Wendy Patton's Lease Option program, but it looks like she recorded it 25 years ago...I've seen a VIMEO video of Jim Aydelotte,  but has virtually no online presence,  and I've come across a lot of negative comments/reviews about John Jackson that has me feeling less than confident about his lease option program...Comments anyone???

If you do use a heloc,  you are directly negating any benefit.