You can earn a high return, because there is a real service provided. 

So if you are happy with your returns, then price is reasonable.Given you provided no information about exact location, no one can say whether lease terms are favorable.  

Hey Brian, I have multiple units in Cleveland giving me steady returns, if you need help finding a good neighborhood to start on, let's connect and discuss how I can help you out.

-Single-family home sales declined 1.5 percent year-over-year;-Days on Market (DOM) for single-family homes went from 49 to 45 days;-Total property sales were down 3.1 percent with 10,175 units sold;-Total dollar volume was statistically flat at $4.3 billion;-The single-family median price edged up 1.5 percent to $345,000;-The single-family average price rose 3.6 percent to $443,970, which is a record high; -Single-family home months of inventory registered a 4.0-months supply, up from 2.7 months last May;-Townhome/condominium sales continued to decline, falling 9.8 percent, with the median price climbing 12.1 percent to $241,600 and the average price up 7.5 percent to $281,777.

Consider your Return on Equity in this situation. 

Apparently our DTI is too high for the HELOC so we can do a cash out refi but that is less desirable because it means we cannot then get the loan for the rental property despite having 25% down.

Make sure to find one that has flexible pricing options with out high volume minimums.

ISO company that does creative HELOC's:I have a find with great equity in his home but not great taxable income. Are there companies out there that would give him a small loan?Best,Alex

Hi Prabhash, A lot of my investor buyers have targeted the south Florida area for their purchases due to location and high rental demand. 

You need a high FICO.