AZ has some very stringent construction defect suits and is the hardest state to procure GL for a GC.So you are taking an extremely high risk by working with uninsured contractors.

Below are some quick tips about cash out refi vs HELOC/LOCCash out Pros-tax free money-low interest rate-fixed monthly payments unless you choose a variable productCash out Cons-closing costs (couple thousand)HELOC/LOC Pros-tax free -its a line of credit, hence you can use pay back then use again-usually NO closing costs on residential Helocs; there will be closing costs on commericial LOCs-commericial LOC is very fast moving as far as getting funding and refinancing  (Makes it easy to rinse and repeat)HELOC/LOC Cons-higher interest rate-variable rates-monthly payments depend on amount borrowedHope this helps,CB

You can get in with a low down payment and good terms by living in the property.  

https://www.airdna.co/region/us/north-carolinaThis site has a lot of info too:  http://www.rented.com/ultimateguide/This one has a calculator to estimate income - I was surprised at low occupancy (28% for Blowing Rock/Boone vs. about 70% in Florida)...  

Though the city needs a lot of work in terms of crime and school, there aren't too many small/mid size cities with the arts, food, nightlife, access to suburbs, lakes, wine region, etc. that Rochester has while having extremely low taxes. 

Both have great rental histories, are located in very good neighborhoods and very low vacancy.  

My assumption is I'll need to invest out of this area, as cap rates around Palo Alto are very low.

The trust rates range from 15% on the low end to 39.6% on the high end.  

To affirm what the others are saying, you are going to need low interest loans to make the BRRRR strategy work.

However, they are being extremely difficult to deal with.