I’d stick to Franklin, Clayton, Westminster, hayesville, Bryson city I'd also add Brevard and Waynesville to this list if you are looking for lower-cost options.

I knew that was not true because I had paid $780 a couple months before on a property in the same area and also my realtor told me that her clients had been paying that lower rate.

As others have suggested, you could get a conventional or FHA loan if you want lower down payment options.

Some areas will have lower cap rate but higher appreciation and some will have higher cash flow but lower appreciation. 

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

The down payment might be a little higher, but it will be a much longer-term loan that you won't have to worry about coming up with big payment in month 24 and it'll be amortized over a much longer time period (probably 25-30 years), so the monthly payment could actually be lower. 

Lower risk all the way around.  

If you do, perhaps there's something in another market similar but at a lower price point.

Once it's rented, use that rental income to help offset your DTI, which may help you qualify for the second property sooner.Partner with Investors: Team up with someone to split costs and lower your personal DTI impact.