There are mortgage recast calculators online or you can reach out to your lender.P+I payment will go from 2155 to ~1800 given the numbers you provided.

The value of the home is around 245k, although it has not been appraised that is the 'desktop evaluation', whatever that is worth.

First there is no reason to buy a Townhouse "all cash" instead put 40% down and reap the benefits of an extrenly low rate, No PMI and the option to escrow.

As a rental, tenants will likely prioritize the location over minor inconveniences.Your strategy of betting on appreciation and eventually pulling equity makes a lot of sense in this market.

However, we typically use the FHA-203k loan because it involves a renovation, which I highly recommend if you are looking to really boost your equity and have the cost of the renovation wrapped into your loan with a VERY LOW AMOUNT OUT OF POCKET.I like the FHA loan, but honestly, the Fannie May Home Style is an even better product at this point because you just have to bring a bit more cash to the table 5% vs. 3.5% (w/ FHA), but you have a bit more flexibility.  

Maybe you could have a timber guy strategically come in and cut some of the timber down so you could get some cash and then sell to someone looking for some hunting land.  

I think you're on the right track with Lowell - that's consistently been one of the most affordable markets in the greater Boston area when you consider price to rent metrics.

My wife and i are just starting out in real estate investing in the Grand Rapids, Mi market.

It seems to me though that any project I have built in the last few years require detention regardless of being in the flood plane.

My understanding is that the market is more important than the property.