By cheaper i mean that it would be easier for me to get into the investment. i am living abroad now on a lower salary, but will be making a position change soon and start saving up a fund for a return to USA and to start investing. plus, by that time, I will have a track record on the san jose property that i guess i can use to get into other properties. 

After the HELOC, the CLTV will be around 83%.Would appreciate suggestions from experience BPers to lenders who would be able to do this at low rates and possibly lower costsThanks in advance

We lowered our rent a little bit and got it rented pretty quickly.

Even Midwestern markets properties are trading at a much lower clip than 12% ROI for properties.

Cap rate is the Net Operating Income (excluding the cost of money) divided by the Purchase price.In Lower cap rate market you will pay higher price to own a property. lets say 100k income at 10% cap = 1million priceSame income 100k at 6cap market = $1.666million priceWhy THEY have?

Brokers can see who has lower fees on any given day.

Any idea of cost per sqft on construction with lower end finishes? 

If it is newly renovated, why are the rents lower than market?  

total waste of your time and effort... only way to work on this is if you have significant equity.you wont get the bank to lower their fee's no way..but if you want to fool with it for practice or just because it could be a good learning experience for you  to realize you cant work with these sitautions this late in the game unless your going to stroke a check ..

But you have a family, look into 4 plex and duplex where you can house hack live in one place with lower down payment than an investment loan and rent out the other spots.