Your equity, to begin with, will be much much lower, but your monthly costs will be lower bringing down your risk.The danger with this is that the property will not appraise for the offered value.I would discuss this with your lender and your Real Estate Agent if you think it may be an option. 

@Kevin Allen a HELOC can be a dangerous product depending on what it's used for, so I would go with the higher fixed rate and the shorter payback.

I do think one big issue that doesn’t get addressed on BP is that using “8% cap-ex to build reserves” is a dangerous strategy.  

Your improvements will start to pay off in fewer repairs, better tenants, and higher rents.  

The risks in investing in depreciating markets are, but not limited to:Tenant quality (may not be great)Size tenant pool (potentially decreasing)Risk of being forced to decrease rents (may turn your cash flow numbers into losses)Exit strategy (loss of property value, fewer selling options, etc.)Loss of property value and loss of rents (point of investing is to actually profit...)May not be able to survive a market crashHope that helps!

There are definitely some questionable neighborhoods but at the end of the day its the tenant screening process that will make or break your investments.I would focus on that because there aren't particularly dangerous areas in Peterborough.

That and fear can be dangerous for your growth and development not only in real estate but life in general.So congratulations.

@Joe Splitrock  I would hire a dog poop removal service... pay for that during your marketing time then cancel once its sold.only issue I have ever had is if there were dangerous dogs like pitts that were obviously agreesive.that is a bigger issue.

I personally feel there are opportunities for more “deals” but they are fewer and further in between.I invest in Keller to be exact, because of their great school district.

I also feel like it draws dangerous attention to our home since the agent boasts about how much it sold for and it being the most $/sq in the neighborhoods history.