Those DG buildings are built cheap and I don't like single tenant risk in a town of 2,000 people.

Are you looking for multifamily or single family home?

They sell a 4 unit for close to 1 million dollars close to Jacksonville. they want 250k or 300k down. there's no upside. you can google the properties on biggerpockets and there isn't a lot of satisfaction. it's a slow return and get rich slow strategy. our focus is always as a builder to add maximum value, lower cost as low as possible, build and rent and build and sell the same product and raise prices to help investors out. we have a large market share and large purchasing power in our market in columbus ohio. the one strategy I never liked about turnkey new build brokerage companies like them and build2rent or others is they don't really build close to urban centers and most are single family homes. the numbers don't work on single family homes. if single family was the way to go more companies would be doing it. but by far the most common type of new construction built is three story walk up apartments.

Detached HousesWhen in doubt, consider the tried-and-true detached single-family house.

When I worked with a property management company, we had someone buy a unit (single family) that had a STR and marketed it as a STR.

Investing in a single-family home in LA and expecting a good cash-on-cash return will be very difficult. 

Capital gains are calculated as:Sale Price - (Original Purchase Price + Capital Improvements + Selling Costs) - depreciation (if applicable) = Capital GainYour mortgage or HELOC balance does not affect this calculation—it only determines how much cash you take home after the sale.In Massachusetts, if the home was your primary residence for at least 2 out of the last 5 years, you may qualify for the Section 121 Exclusion, allowing you to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from federal capital gains tax.

Utilities cost $150 per month.

The only item I would suggest is double check the payment terms of the your HELOC... in particular, can you pay interest only or are you required to pay a portion of principle each month on the amount utilized.

Context matters: for some apartment buildings that compete head to head with a very similar property just down the street, this may be a good strategy.We rent premium single family homes and I have never offered an incentive.