HI Ken,The primary you can go up to 85-90% LTV of the current appraisal value with interest only payments on a HELOC.The rental's you can get HELOC's as well but only from local community, commercial, or credit unions like penfed.org up to 70-80% LTV around mid 5's.You never go to big banks to ask them about HELOC's as the answer is predictably, NO.HELOC is great if you're going to draw money out and replace it relatively quickly since you only pay interest when the funds are being used.

You might want to investigate a neighborhood with a working class foundation - those tend to be extremely stable and easy to predict. 

I'm having issues predicting the different cost structures of these homes.

You can't predict the future. 

For a down payment in a buy and hold situation, cash out refi feels more predictable. 

In saying that, it is very difficult to predict what the true value of a property is in a lower class area where the comparable are all over the shop.I know when we were working the Kansas City market and someone would ask me for comparable sales it would be very difficult to provide figures or even give estimates.Our asking price figure would include a medium price point with a minor profit that we believed was sufficient but would also guarantee that the numbers promised on paper will be achieved in real life.The higher the class of area, the lesser fluctuation in the comps.Thanks for reading and have a great day.

If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.Forming macro opinions or listening to the macro or market predictions of others is a waste of time.

I can't say enough about how impressed I am by his analysis, charts and predictions.

Is it possible to accurately predict what an area will be like in 15 or 20 years?

Top Estimated RetailRadio Shack BK possible shutdown locations.