My personal preference for a buy and hold would be an already established area (or an area that's still gentrifying, but has already seen significant progress). 

However, I'm short on cash (will be putting $20k of my personal money into this)  and I am exploring creative ways to source funds for the project.I’ve been quoted for a $100K HELOC on my primary residence with a 30/1m ARM at a 13.25% rate and APR, with an interest-only monthly payment of $1,016 and $3,825 in points.

@Thomas FarrellRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

If they are CF positive then they will not cohnt against your DTI but will improve it...that's standard conventional guidelines barring a few exceptions.

None of this has anything to do with your personal tax return.

I personally have success in doing flips with my partner here in Ohio.Lakewood and Edgewater are gentrifying neighborhoods in Cleveland.

A person files for and get's whatever from of welfare.

I highly suggest as many in-person networking events as possible! 

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

No Personal Use: You or family members cannot live in or personally use the property.2.