Unfortunately the barrier for entry into a lower-end home is about $1 million now, and property taxes are low (likely less than $5k).I currently have a financed home with about ~250k in equity (2% interest rate), and we have about ~220k in cash. 

The upstairs tenants are paying super low rents in a 1 bedroom and 1 tenant is leaving in 3 months.

I would assume so, but it's best to check with the lender to see how they interpret official FHA guidelines which read:"Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s estimate of fair market rent from all units, including the unit the Borrower chooses for occupancy, and subtracting the greater of the Appraiser’s estimate for vacancies and maintenance, or 25 percent of the fair market rent."

It could have been cheaper, but I am living here so my materials are more expensiveI would say that these numbers are pretty low, because I manage the project myself and I hire very affordable labor. 

Let's break things down, hopefully, I am understanding everything correctly...Exit Strategy 1: Full Rehab and Rent IncreasePros:Higher ARV (After Repair Value): This strategy could potentially increase the property's value to $126,000, allowing for a higher cash-out refinance amount.Higher Rent: After the completion of the Scope of Work (SOW), the rent could be raised to $1,000, generating more monthly revenue.Long-Term Value: Completing a full rehab could increase the property's long-term value and appeal, making it more competitive in the market.Cons:Higher Initial Investment: The SOW budget is significantly higher at $15,750, requiring more cash upfront.Vacancy Risk: Asking the current renters to vacate for the rehab introduces the risk of vacancy and lost rental income during the renovation period.Longer Timeline: The rehab process and finding new tenants could extend the timeline before the property starts generating its anticipated cash flow.Exit Strategy 2: Minimal Repairs and Keeping Current RentersPros:Lower Initial Investment: With a SOW budget of just $2,500, this strategy requires less cash upfront.Quicker Turnaround: Completing minimal repairs and keeping the current tenants can significantly shorten the timeline to start generating cash flow.Reduced Vacancy Risk: By allowing the current tenants to stay, the property continues to generate income, avoiding the risks associated with vacancy.Cons:Lower ARV: This strategy results in a lower ARV of $110,000, which affects the cash-out refinance amount.Lower Rent Increase: The rent increase to $900 is less than what could be achieved with a full rehab.Future Repair Costs: Minimal repairs might not address all the property's needs, potentially leading to higher maintenance costs down the line.Financial Analysis:Cash Flow Considerations: Both strategies provide positive cash flow before reserves, with Strategy 1 generating $160 and Strategy 2 generating $148 monthly.

A) Buying a small multifamily in a market with low inventory for $50-75K down and getting a rate in the 7-8% range.

It's not like in the US where you have the cash-flowing low appreciation Mid Western-style and the negative cash flow high appreciation Californian-style market.

Values are also starting to show appreciation for these site built Modular homes as well, its a great way to buy low and sell high.

Hi Jonathan, I started with out of state turnkey rentals as well but slowly moved away from it, reason is because is mostly for moderate to good appreciation and low cashflow.

A couple of great books on I'd recommend checking out on the topics of Acquisition using OPM and Creative Financing are below.The Book on Investing In Real Estate with No (and Low) Money Down - Audio BookWealth Without Cash - Audio BookHope these help you as much as they've helped me!