—Clint, we’ve pointed out the cause of the initial issue to the parents several times.

We're happy keeping our current loans, all under 5%, for the full term at these low rates, especially with stock market returns doing so well for several years now, so it's made more sense investing there rather than paying down loans. 

@Greg L.Cap rates are inversely proportional to prices.Falling cap rates means prices have risen.But, you also have to remember, a cap rate might be tight in year one, but rents would be expected to rise over time.Unlike residential properties that look at year one cash flows, commercial properties go out several years and include appreciation and sales scenarios.

I also did a flip with my dad several years ago.

Meghan,I insure several 2 unit Condo Associations.  

Doing so will likely eliminate all extra cash for several years, keeping me from investing.

As you mentioned, I have been thinking of Multi units and / or several SFR vs currently having everything in one SFR, to diversify. 

There are several lenders specializing in such, here is a list that you may find helpful:https://www.biggerpockets.com/blogs/2810/50272-lis...You can do cash-out refi, but you would have to wait several years before you could do that, most lenders will not use appraised value until 3 years after the purchase, they will use purchase price as the value.

Several members have pointed out the risks and pitfalls of buying there and some ways to mitigate those risks.Major risks are: 1. unacceptable, but unseen damage2. title defects, leans, and second mortgages convey to you3. entering the property risks in legal issues and getting attacked4. bidding gets out of hand running prices up near mls valuesStrategies to reduce risk:1.

Several years later, after serving in the USAF, I landed in Illinois.