Have you ruled out conventional lending?

I know the rules are buying equal or greater for your replacement property and my replacement is worth 160K, more than my sale property of 100K, I’m just buying it for 90K.

There are some rules to know so do your research, talk to your CPA, etc. (2) pull out equity through a refinance.

The allocations must comply with the substantial economic effect (SEE) safe harbor rules or produce equivalent results to such compliance. 

We have an area in riverside that has historic homes that are worth a lot of rehabbed right and there are restrictions on how you rehab them as well since they are historic.

That said, here are some details of my first deal:Location: Toledo OHType: Duplex (2/1 @ 2)Purchase Price: $49,000Appraised Value: $62,000Current Gross Rent: $1065Market Rent: $1,2501% Rule: 2.17%COC: 17.37%Financed w/ 25% DownThis is a long-term buy and hold.

Looked to be some decent cash-flowing houses near App State that could hit 1% rule...

I haven't ruled out Las Vegas as a potential market to enter because I believe it's trending in the right direction but as you mentioned, I would like to do more research in areas where the ROI and cash-on-cash returns fit my criteria. 

You can technically sublet under the roommate rule.

I also understand that as a rule of thumb, you should not even look at a property unless you have all funds readily available.