If you are able to come up with the down payment for using the rest of your entitlement and your current home stay afloat, then that would be a solid choice.

Your choice...

The way I think, the Carolinas is the better choice.

Hey Chris, there are quite a few popular ones that most investors use.

It literally takes 5 minutes to get from downtown KC to NKC.  4) See 3a.5) The KC market is not yet saturated, but I think a lot of the "popular" areas to invest in are getting too saturated.  

The tenant owns absolutely nothing until they exercise the option and close on the property.Otherwise, they are merely a renter and can be evicted like any other renter if they miss payments and break the rules laid out in the lease agreement.Yeah, reading through the forums here it's apparently a popular issue where tenants being evicted sue for equitable rights landlords who didn't follow the rules closely enough, dodd frank/safe act, charging tenants too much in repairs or for 'disguising' a financed sale in a lease option etc.

The plan on investing in infrastructure isn't economic a choice as much is it based on deferred maintenance. 

First, see Sch-C vs Sch-E.Second, the appraisal is not performed based upon EITHER schedule.However, the GSI-Expense = projected NOI, times 0.37 is actual NOI and that has to cover the mortgage+interest, insurance and taxes.The high vacancy rate (1.00 - 0.37 = 0.63) is a killer and usually, you would take such a loss ONLY because you would be year long resident AND love the life style - - aka it's typically a bad 'investment' and you're making this choice for OTHER than financial gain.

It will limit their choices to units that have been sitting vacant.  

For air conditioning in this scenario, you could install a ductless heat pump if there is sufficient demand.Regardless of your choice for heating system, you will get your best bang for your energy efficiency buck by improving the building envelope (air sealing, additional insulation), which may necessitate the addition of a ERV/HRV to maintain air quality in a tighter building ... but it may also allow you to use a smaller boiler/furnace to condition the building.