There is much confusion about the 4% and 6% in property taxes.Non owner occupied property is taxed at 6% of the value to get the taxable value.This does NOT mean your actual property tax is 6% of the purchase price for rental property,In reality property taxes are about 2% of the purchase price for rental properties and about 1% of the purchase price for owner occupied properties.Google Greenville County Property Tax estimator and play with it and get a sense of how it works.3.

Playing for cash flow still, but also a little for appreciation and the single families typically dont require as much hands on work on a weekly basis (mowing grass, shoveling snow, etc.)Everybodys niche will be a little different.  

I’ve been in a similar situation, and I think the idea of buying in lower-cost areas to renovate and rent out is a great play.

Unfortunately, ther'es no guarantee, because there are a lot of variables at play here.

If nothing else, put a few dollars in for giggles - most of us on here can afford to “play” with a little cash (whether that is $50 or $50k depends on you) Why on earth wouldn’t you play with something that can potentially triple your money in a week or two?

I would consider it, but living and knowing the Memphis market, the purchase location plays a big part.I see that this was posted in 2010, so I am assuming you have had many replies and probably don't have the property any longer.Tommy DouglasTDHomes4U LLC

A HELOC gives you flexibility since you can draw as needed and only pay interest on the amount you use, which might be useful if you’re not sure exactly how much you’ll need upfront.That said, it’s important to compare the interest rates between a HELOC and your expected returns in the stock market—if you’re making more in your investments than you’d pay in interest, it could be a good play. 

I knew it was a long term play as well, and wasn't looking for something immediate with them.

Play the long game and focus on rent and home price appreciation.

Quote from @James Kerson: James, play along with me:1.