I love low end rentals, but don't recommend them as a long term strategy. 

Cash out and refinance is an effective strategy if you are looking to continue to build your real estate portfolio.  

@Abdul Azeez, I think that the problem is that you are stacking the deck against yourself trying to do all of these things on your first deal:1) Purchasing the property from an online auction site / bank, which is notoriously tricky even for the experienced investor, due to their proprietary contracts and minimal due diligence period and strict deadlines.2) Working with a new contractor that you haven't used before, or seen their work before, and who may not be used to dealing with investors.3) Trying to get conventional financing on a property that has a short closing time and where the mechanical systems cannot be tested.4) Working on your first deal by yourself instead of partnering with a local investor who can guide you along, or at least a mentor who you can turn to with questions.My advice is to make it easier on yourself by considering buying a property with a standard contract and longer due diligence period, network with local investors who can provide you contractor contacts and also some guidance, and consider using private financing or hard money instead of bank financing.In my opinion, buying from the online auction sites is a more advanced strategy that you can use once you are able to ballpark construction costs yourself and/or you have a trusted contractor you've worked with before and/or you have private financing or hard money set up so you can close fast and/or you can purchase the property without interior access and hope to get lucky in terms of condition (but still buy at a price where you are comfortable doing a full rehab if necessary without losing much money) and/or you are familiar with agreement of sale contracts and closings in your state so you can assess the risks of using the bank's seller-friendly contract.You're already doing the right things by asking questions on this forum, and taking action.  

Not sure about stocks but check out the podcasts on here, awesome content and can help you find a good investment strategy in real estate that works for you. 

@Elaine Bonini, Yes, to sell one larger asset and use 1031 to purchase several replacement properties is permissable and a very savvy use of the 1031 strategy.  

I have the funds but don't want to tie it all up in the deal.Does anyone know of a strategy that will require a lot less DP?

I would love to hear any feedback for any of the above regarding location or strategy in general.

Often times it is better to focus on quality over quantity. 10 x 4-plexes is 40 units ... for example, if you can't meet your investment goal with 40 high quality, reasonably leveraged units or less in scottsdale, you may want to reassess your strategy IMO.

My current focus is on Wholesale but I am completely open on taking on different strategies if the numbers make sense and the resources available.

I do plan to use construction as a part of my strategy.