As far as other factors for an area to choose, outside of the location, I'd definitely say do your homework on the general feeling of STR by Township.

entp.hud.govYou also want to make sure you run the math to ensure it passes the "Self Sufficiency" test where the unit rents must support the PITI by using the 75% and vacancy calculation. 

We use a YTD paystub and last year’s W-2(s) to calculate income several different ways:Hourly or salary income calculated to a monthly amountYTD income divided by number of YTD monthsYTD + W-2(s) income divided by the corresponding number of monthsIf these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment to make sure they’ll always be able to pay the rent on time.

And you'll be earning a paycheck instead of spending it on classes taught by professors who probably have very little experience in real estate investing.After four years of college, you'll still be without a home, without a job, and without experience.

Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.3.

However, my concern is:  would my parents be committing fraud by getting a HELOC, and then turning their primary into a rental just a few months later? 

Best way you can confirm is to get SCE out there by calling the planning department and asking them to show up.

I ended up leaving the partnership due to venturing off to focus on my startup but no bad blood.Recently I’ve been contacted by the father of one of the partners and he’s having some health issues but in the midst of it all the property is having some foundation issues.

It has been hard finding a place that 1) Doesn't get bid up by cash buyers that we can't compete with 2) Doesn't have 10's of thousands of capex out the gate3) Is in an area that I'd grade as C+ or better.

Hey Jeff, I learned about the different neighborhoods in my area by speaking with experienced contractors, agents, investors, and property managers.