The reality is that a property properly renovated to a high level and eliminating deferred maintenance that is also managed at a very professional level, can and will outperform a marginally renovated property with marginally good management.

Pay attention.STEP 1:Lists, foreclosures, absentee owners, probates bla bla bla, you need to send thousands of mailers calls or texts to get one deal yes?

Many lenders offer competitive introductory rates, so if the goal is to pay off ASAP you will benefit from this. 

I am very data driven and I simply don't see Philly as an attractive destination unless you are -- local, hands on, DIY, don't have prop mgmt expenses, don't pay leasing commissions, get preferred rates from lenders, know a guy who does handyman work, etc. 

The issue I run into, based on what I can put down, is that I would most likely have to split the mortgage down the middle (I pay half/Tenant pays half) based on current rental rates and current mortgage rates (considering what I can put down).

If that is the case, you sell the house, pay off the HELOC, and use the $15-$20,000 to get into a new house.  

DIY will be the "cheapest" - you can set up an account on the MA DOR website, register your LLC, you pay over the whopping $500 MA charges you to register an LLC, and voila, you are off to the races.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Now you need to figure out how to find deals and pay for them.

When I purchase my rentals, I have/use a large HELOC that i have on my primary residence to pay for the investment property in cash and also use the HELOC to renovate the property.