you could play the arbitrage game and borrow at 4 or 5 on your heloc then use those funds to invest with a really good HML in Bend that is doing short term flips probably make 10 to 12 gross and net 5% to 7% on your arbitrage..or you could just use the money for quick turn and burns.. if you have the band width to do those.. 

Insurance plays an important role as the first line of defense against nuisance lawsuits and common events like slip-and-falls.

But this does seem safer, and I'd rather play it safe.

I know many variables can go into play, but run this simulation with me. 

We are also looking at long term play for AZ with water/drought and general warming up. 

No sweat if you'd rather play those cards closer to the chest.

I don't think that a 12% cash-on-cash return deal would be particularly difficult in today's market, provided that you are focusing on rental returns and not, say, a speculative play in a high-appreciation, low-return market like San Fran, DC, or NY. 

Because they will play a large part in what you get approved for/how much they offer.

@Sean Weichel This is where your local market research comes into play.

You need to set a dead move out date and stick to your guns.