That makes sense that you are 1.5X in Denver @Luke Stewart, is your vacancy quite a bit higher in the summer? 

Locking in such a low rate means more cash flow if you rent it out, even with your HOA and property management costs factored in.Let’s tackle this using your numbers:Current Rent: $2,950/monthAnnual Tax, Insurance, HOA: $7,000Mortgage (principal + interest): Roughly $20,832/yearWithout even factoring in maintenance or vacancy costs, you’re likely cash flow positive.

In addition, targeted searches for "apartments 77008" and "greater heights apartments" have lower competition which provides a great opportunity for organic and lower cost of acquisition.Household Composition: 77008 shows balanced demand for both family-oriented housing and non-family units, promoting investments in single-family homes and high-quality apartments. 77063 indicates higher demand for rental units and smaller homes, focusing on apartments and affordable housing options.Despite higher entry costs and a lower percentage of renter-occupied units, 77008 appears to offer better prospects for appreciation and lower vacancy rates, making it a more suitable choice for investment.Greater Heights OverviewThe Greater Heights area (77008), often referred to as "The Heights," is renowned for its prime location offering a blend of amenities, top-rated schools, and abundant job opportunities.

What's the vacancy rate like, from your experience/estimation?

Potential rents for a single-family targeting off-campus students sound great, but will that cover renovation costs and potential vacancy time during the transition?

I like the multi unit office model, like multi family it brings down the vacancy risk, but also, in a small town I'd be looking at growth trends, incoming investments etc to confirm that use case for the long term. 

Nice to discover tenants who are neat, and you don’t have to experience a few months of vacancy right after you close. 

Ensure that the projected rental income from the multifamily property comfortably covers these expenses, along with any potential vacancies or maintenance costs.Interest Rates and Terms HELOCs often have variable interest rates.

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

Factor in vacancy rates, property management costs, potential repairs, and even things like lawn care.