Vetting specialists for the work that needed to be done including the property manager.

Vetting specialists for the work that needed to be done including the property manager.

You don't want to add insult to injury by offering to buy their house off the bat including offering to do a Subto. 

It is easy to assume, but assumptions are only guesses and often clouded by our view of people.As you are out of state and this is clearly causing you stress, I would suggest talking to a few local property managers to see if they can take over management of the property.Vacancies do cost, though the price someone else quoted is higher than I've ever experienced outside of an eviction where lots of stuff was left behind and the place was not taken care of (both of those were probably $6K once I factored in lost rent).

Here are some considerations for each option:Option 1: Using the HELOC for a down payment and renovation on a second property to rent:Pros:You can leverage your existing property to acquire another investment property without selling your current home.Rental properties can provide a steady income stream and potential long-term appreciation.You can use the HELOC funds for renovation, which can increase the property value and rental income.Cons:You'll have to manage the property yourself or hire a property manager, which can be time-consuming and add to your expenses.There is a risk of vacancies or unexpected maintenance costs, which could impact your cash flow.You'll have to pay back the HELOC, which will increase your monthly expenses.Option 2: Building a new house in a new community and selling it for a profit:Pros:You can potentially make a significant profit if the market is favorable and the property value increases during the construction period.Building a new house allows you to customize the property and potentially attract more buyers or higher rents.Cons:This strategy involves a higher level of risk, as you're betting on the market to appreciate in a relatively short period.There are many unknowns and potential delays in the construction process, which could impact your timeline and profitability.You'll need to have a good understanding of the local real estate market and construction costs to ensure that your project is profitable.Before choosing either of these strategies, consider the following:Research the local market conditions in Chandler, Arizona, to understand the current demand for rental properties and new construction homes.Consult with a real estate agent or investment advisor who has experience in the local market to get their insights on the best strategy for your situation.Evaluate your financial situation, including your income, expenses, and risk tolerance, to determine if either strategy aligns with your goals and financial capacity.Consider the tax implications of each option, as this can impact your overall profitability.Create a detailed financial plan for each option, including projected income, expenses, and potential risks, to help you make an informed decision.Ultimately, the best strategy for you will depend on your unique situation and goals.

All my purchases are about the 80k price point (including rehab) and rent for 1200-1300/month.

Another important factor here is your deal flow.

Examine your alternatives for financing, including low-down payment conventional loans and FHA loans.

There are also some really great resources for anyone starting out with some local groups such as AZREIA where we have monthly meetings and some great subgroups, including a new investor subgroup. 

Factors such as size, condition, having a pool, etc. all factor in.