After analyzing the local Mercer County market I've noticed there are not that many MFH that are desirable meaning cash flow can occur, but appreciation, schools and good tenants will be at risk.

An example problem statement that I may have stated (and built the software for) in 2003, when I started investing full time: Build a tool for lead generation that collects county records from the county recorder's office (and property card data), finds the recent first mortgage defaults  from trustees websites or public filings for properties that are between 1000 and 1700 square feet, in a neighborhood of 90% like-kind properties with greater than 20 parcels, houses built after 1978, that can cash flow at current rates when fully leveraged. 

After analyzing the local Mercer County market I've noticed there are not that many MFH that are desirable meaning cash flow can occur, but appreciation, schools and good tenants will be at risk.

You would need to pay cash to do that or work with a local bank who will allow you to do that.

I am expecting a cash flow between $1200 and $1500.

Getting money after you have a number of flips under your belt can be fairly easy and all the higher volume and/or higher dollar flippers we know eventually run out of cash.

I have been doing DSCR loans (back when they were called Investor cash flow loan) since 2013 or so.

Purchase price: $290,000 Cash invested: $45,000 Short Term Rental (Airbnb) What made you interested in investing in this type of deal?

If it's working as an LTR and you are cash flowing, I'd be willing to bet that the juice won't be worth the squeeze in converting them to STRs. 

Pay cash and then after 6-9 months do cash out refinance. - in this case, I will have more time to shop around for better loan terms/rates etc.