@Mike Liu there's always a tradeoff between risk & reward.If you want higher cashflow, you'll need to get into riskier investments.STRs are riskier than LTR due to: saturation, changing local government regulations, more intense time required, etc..Regarding LTR higher cashflow: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.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

.* HELOC: this is how I believe I could use the equity and protect the asset.Is the following a correct assumption? 

You cannot make that assumption.

Their assumption is always that you are trying to avoid taxes in some way. 

So, many investors are moving down to Class C without fully understanding the corresponding risks.Read more in copy & paste below:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.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.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Yes, this exists and credit/liquidity requirements are not onerous.Many satisfied customers over the years and now open in select metro areas in 10 states: TX, NM, AR, MO, IN, OH, NC, GA, TN, ALWe are happy to assist with questions or inquiries.Implicit in this response is the assumption that the deal is so, SO good, that you can buy it SO LOW, that with 100% financing at acquisition AND rehab, you still come in at 75% to the ARV. 

@Chris Rogers higher interest rates have caused most Class A property purchases to NOT cashflow for an approximate 3-5 years.So, many naive investors are chasing Class B, C & D properties to cashflow, WITHOUT fully understanding the scope of the additional risks involved:(Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.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.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

I assume you are referring to refinance, loan modification, assumption of mortgage, mortgage assignments, etc.

Regarding the septic approval, my understanding is that systems are rated for number of bedrooms under an assumption of usage and per person usage.

@Dock Newell Jr recommend you focus a bit higher than asking which neighborhoods to invest in.Suggest you take some time to understand how the local neighborhoods are ranked by Property Class/tenants and what to expect from them.See below for how we do this in Detroit and use as template (this is a copy & paste):Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.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.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.