I would look at the value of the rentals before you make a decision to see if that makes sense for you.Regarding the furnishings, if you have to pay more for them (again here in FL, properties are generally listed fully furnished and you don't really get a discount to tell people to take the crap out - in fact, I had one guy refuse a good offer because one of my conditions was for them to take their crap!  

I intend to rent out the units by room to college students (does it sound like this would work in this area and what are some general tips/things I should look out for?).

If I used the HELOC, the investment needs to generate >9%.I recognize there are many variables not listed here but would love to hear from more experienced investors on more generally how you think about using cash vs. home equity to grow your portfolio in the current environment. 

DTI ratios are generally used in consumer/residential (aka primary) mortgages when the property is in your personal name.

@Jonathan SmallThese are just general and common knowledge about Florida known to most. 

To preface, I have my real estate license and generally pull a list of presumed high equity(purchased more than 10 years ago), absentee owners in my target market and send out about 3000-4000 postcards or letters every 6 weeks or so. 

Additionally, I expect applicants to follow instructions in the advertisement and application, to make and keep appointments, to show up on time for appointments, dress and behave appropriately at appointments, and in general demonstrate throughout the process that they are someone that is easy and pleasant to do business with.

Plus with rising inflation investors are going to want to park their money in hard assets since historically it's generally a good hedge against inflation.

@Rob Ross Generally speaking there are plenty of opportunities in the 8% range, and a few that go higher.

You may have to evict which is generally the course it goes but do something/everything (legally available) to cure this quickly.