Alternately, if I acquire this as a sub2, I was thinking of exiting as a Lease-option OR researching and analyzing the AirBnB approach...As you can see, the mortgage balance and Heloc balance in the picture make this tight to run as a flip, along with an estimated rehab cost of about $40k.Rental rates vary, as I'm seeing on propstream that rents can go for about $1,855.

Potentially higher returns (though maybe not considering house hacking as an alternative)Cons of buying out of state:All the difficulties of purchasing / managing an investment property at a distance--especially as a first time investorHaving property management fees (and maybe turnkey costs) eat away at the returnMy main question is: Should I even consider buying a duplex in LA with our (potentially) short time horizon?

I've read up on VTB, vendor take back mortgage, but am unsure if there is another alternative to offer to a potential seller.Thanks!

You have to be joking.. a cap rate is calculated as the ratio between the net operating income produced by an asset and the original capital cost or alternatively its current market value.

We do not know if you are looking at Agency Multifamily financing or Small balance Alternative financing etc.

If you have changed an alternator before then you can probably handle changing a circulator pump. 

I've been researching multiple locales (Springfield IL, Milwaukee WI, Indianapolis GA are the other alternatives) and settled on Cleveland, OH, for my first rental property purchase.I have the capital to make 3-4 purchases for the next year.

This option appeals because it would lead to greater cashflow and more units would help mitigate vacancy expenses.However, an alternative would be to take the money and invest in another duplex that's approximately the same price - this would mean that we would have a smaller mortgage payment (or none at all) and much more cash flow than we do currently.

I want to make sure my recommendations are ethical and timely, so I figured I would get some alternate opinions.If you have any other thoughts, feel free to post them here.

If you have to punt on the 1031 exchange altogether,  there is an alternative strategy with the use of the bonus depreciation in the 2017 tax law.