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.

The last thing you want it to trigger income taxes from accidentally cashing out.  

@Kyle LipkoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

“Wholesaling is passive income!”

The property is $400k and brings in about $40k in rental income without the residential unit. 

That question depends on if you have enough other income to qualify.

Even if the cost of the rehab doesn't increase the value of the property much it might be worth while BECAUSE you are doing the rehab to maximize RENTAL income NOT ARV because its a rental and you aren't doing a BRRRR. 3.

You need a designer who understands maximizing income on properties, or you need to understand it and be able to sketch it out. 

I am a big fan of getting rid of consumer debt as it puts a constraint on your income and savings.

The problem is there is no income assumption you're making each month and how much of your money you're saving towards paying down your loan (inside your offset account with AIO CMG loan) since the disposable funds after your living expenses are transferred over to reduce principal balance each night at 12:00AM.