I can tell you these facts:SFH lots of times do not qualify for max cash out options b/c the rent can'y support the max loan payment.2 - 4 unit houses always have a 1.5+ DSCR and never have a problem affording the max cashout...STR rental structures blow LTR rental structures out of the water. 

Since I am focusing on cash flow I want to target B or C+ neighborhoods. 

@Bill B. i think he did this himself without a PM

There are good people who, if they could, would choose to live in Class B neighborhoods, but they can only afford class C....that is your target resident.  

I stand corrected:)They do have an office in Metro Detroit and while we're far from perfect, we seem to get a lot of their unhappy previous clients.In our opinion, they built a system for Class A rentals - where tenants have 680+ credit scores and rarely have to be evicted or trash properties.They then tried to apply their processes to Class B & C rentals and that's when their service issues increased.All this caused them to recently significantly increase their Flat Fee pricing and monthly minimum charges.

B) Worst case is I sell my current home, move into the foreclosure, live in it for 2 years, and then resell without the capital gains tax hit.  

After reading this thread, a few comments come to mind over this common A or B decision.Without knowing how much it is (no need to say) makes my advice (or more accurately, my opinion) more general in nature but here it goes:Lending has very little to no tax shelters whereas buy and hold does.

b) I was initially thinking short-term rental, which is where that surge of requests came from but it feels like a lot of work as I would be doing the turns/cleaning for most part so what are the pros-cons of mid-term? 

Quote from @Michael Dallas: Quote from @Jay Hinrichs: Quote from @Michael Dallas: Quote from @Bill B.

Focusing on B and C-class properties is a smart approach for multifamily investments, especially in a vibrant area like Austin.