I'm in similar situation except with retirement funds. i was 95% cash pre CV & still am. 

I believe I understand most of of the except for the 65% LTG IO financing @ 3.5% part.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

Purchase price: $775,000 Cash invested: $700,000 Sale price: $1,660,000 Fully renovated single-family with 4 bedrooms and 2.5 baths spanning four levels, features high ceilings, extensive crown moldings, millwork, & exceptional finishes throughout.

I personally don't do inspections except move in and move out.

Purchase price: $775,000 Cash invested: $700,000 Sale price: $1,660,000 Fully-renovated, sun-drenched single family with 4 bedrooms and 2.5 baths spanning four levels, features high ceilings, extensive crown moldings, millwork, & exceptional finishes throughout.

We've purchased tons of inherited houses in the Coastal Bend, and without exception, they've all needed title issues addressed.

We are pretty much debt free except mortgage.

An exception is one "cursed" 3-bdrm upper unit in a duplex which sat empty for 6-months once ... prompting me to gut-it back to the studs and perform an energy efficiency rehab.

The insurance company doesn't want to take any action for that, they just paid the money except the deductible.