It looks like sale prices are not required to be disclosed in Idaho.The only 2 I quickly found with prices recorded within a few blocks of you are 5275 W Madison which sold for $276,500 on 7/8/2016 and 32886 N 16th Ave which sold for $250,000 on 6/20/2016.

This will keep you safe and your powder dry.If the lower comps DON'T work, there are 2 options:  1. pass on the deal, or 2. inspect a LOT more properties in your market so you become an expert in value there.  

It comes down to 3 factors#1..... damage to the property...... the issue needs to be fixed NOW or the damage will escalate quickly#2...safety..... is the issue an immediate safety problem#3...habitability..... does the issue effect the immediate habitability of the tenant.

We realize we wont get rich with this one, but its a small, safe option in a hot neighborhood (average DOM is, like, a week.)BUT- Rental here is also a hot commodity.

You could ask them to pay for a structural engineer to guarantee the property is safe.

If the down payment that you need equals the entire 70% to 80% in value of your SFR, then I would go with the cash out refinance and get a fixed rate.If you only need 20% of the equity for the down payment, can pay it off relatively quickly, and want the rest of the equity accessible for future use, go with the HELOC.  

But in regard to rent, I would suggest doing a quick search on the ‘2% rule’.  

Western cities change quickly and dramatically because there continues to be an influx of new people.

Try to deny it and you'll quickly end up on the losing end of a court judgement.

Hey Todd,Thanks for the quick response and the info.