I'm spending more time trying to understand and interpret all of the variables and inputs than I am in analyzing the deals I have on my desk. 

I mean there's a lot of variables here.

Keep in mind buying a business comes with a lot higher risk factors than buying Real Estate. there are many more variables in a property management business than there are in a property. 

I'm sure there are lots of variables so its not a one size fits all answer normally.

Quote from @Linda Roberts: I won't even allow a cosigner from another state.First, you are putting yourself in a tough situation with three or more unrelated tenants, but that's a discussion for another day.Second, I won't allow a renter without income unless they pay their first three months in advance.There are too many variables for me to make a decision.

I’m sure others will comment on this post and add some of the variables I’ve left out.

If not, better to get an easy one for the first one.....And don't worry too much about the interest rates. they are still pretty low (historically anyway, I won't even tell you what they were for my first house :-)The numbers just have to work, and they can work with even higher rates.....there are other variables, including the perceived high rates keeping a lot of your competitors out of the market.

@George Baal I would recommend taking out the HELOC to start but given the high variable interest rate, I would then consolidate that debt into a better financial vehicle.

There is a 10% variable on rents, meaning we can get 10% more than the market average if we are in the right neighborhood and have the nicest finishes.

@Jonathan Moody Good information but I'd like to add some additional points (note that your mileage will vary due to numerous variables).