Absolutely,I have a lot of clients working in Detroit and it has some great opportunities centered around 1-4 unit, affordable fixers that, with a little bit of work can become great cash flowing investments with lower annual tax and insurance costs.The downside is that you definitely have to know what you are doing as the good properties need some hefty work, and the market is pretty competitive.

The seller may face a big tax bill if they receive a pile of cash at closing.

I would just do a cash-out refi with a 30 year loan.

After assuming average repairs and maintenance, you’re AT BEST negative cash flow of $600 per month.

One strategy to rapidly increase door count would be to leverage an equity position utilizing a cash out second equity line or fixed second loan as a down payment for a new primary purchase of 2-4 units.

Cash flow is the main goal!.

You can do a ‘cash out’ refinance on the rental home as a permanent fixed 20-25-30 year loan to pay off the Heloc on the primary and most likely the equity line on the primary permits a ‘re-draw’ to utilize again. 

Cash.

Doing a cash out refinance to recoup invested dollars is more difficult due to home values not increasing at 15% YoY.  

@Andrew BrownI'm in the Reno Tahoe, Nevada market and we have tools that rate every property in our local market for cash flow potential.