Maybe the extra 3.65% spread between the two options isn't worth the risk of not being able to hit the extra $50/m.Just taking a quick glance at the Cleveland Heights demographic information by biggest concern is the 8.6% population decline between 2000 and 2014 and the depreciation of real estate in the area.

Are there certain areas in LA that you consider more risk-averse than others?

Buying/redeeming gift cards for ones self and claiming it is abusing it and you are taking a risk by doing so if you get audited and fail to produce proof.

To remove most of my risk I could go back with a Lease Purchase offer like Mike B suggests.

@Samuel Brand  This is strictly a personal / risk-tolerance decision on my part, but I would not own a rental in Mass. 

You will never factor out all risk and the web will only prepare you so much. 

I would do this if it meant saving enough on purchase price to justify the seasoning period, the interest rate risk, and I still had adequate reserves to cover costs and expenses.However if you aren't able to see real savings on our has price then you should finance it and use Heloc for down payment only.

One risk is that you could end up investing yourself into a JOB if you don't stuctire the day to day operations properly!

From what we see on this side, it is very rare to see a bank ever stray from a loan where they have zero ability to mitigate risk and sell servicing or part of the loan off to someone.

My concern is carrying  a hard money loan for 6 months waiting for the leases to expire.