The rates are lower but watch out if there is a claim.

I also figured if I get the right tenant I can negotiate lower rent for certain things like lawn care and such but again these are just thoughts running through my head at the moment. 

Of course, your return gets lowered, but that is the problem with simply looking for more cash flow. 

Hi @Chris Mason narrowing down an strategy is exactly what I'm trying to do that's why I need to gain more knowledge about this subject, I'm a very analytical person and just like playing chess I like to analyze all the scenarios, always thinking 1,2,3,4,5 steps ahead then set up all my pieces  in place and then go for the checkmate (In this case landing a good deal, lowering my risks and maximizing the profit or cash on cash ROI). 

From everything I know about US RE the returns should be much higher, but maybe certain markets has lower returns.

I've done my comps along with the ones that she provided, and they come in over $100k lower than the stated ARV.

Then I hear about this thing called a Home Equity Loan that, right now, would be paid back at a lower rate than 7%.Let's say I can get the cash together to outright buy the house and then take out a home equity loan at a lower rate than the banks are offering me for a mortgage on a rental property.This sounds like a good way to buy a property and pay a lower rate... but I haven't heard too much about people doing this so it makes me think that there are better ways to use the money that is put into buying that house...What are some considerations that need to be made?

Basically it's set up as 2 condos instead of a multi-family so no one could get a mortgage to purchase the whole thing.We were able to come in with a substantially lower bid since we can pay cash. 

I don't know Auburn at all but prices seem way lower there than the west side of syracuse.As to your concern about success rate, not sure where that number comes from but I have not had any more trouble renting units in the city or out so that feels like a red herring to me.

I'm looking to house hack my first property, and I'm not sure if I should find a 2 or 3 flat in Chicago area where it's more expensive and what I can afford will definitely need more work then I would like, or buy a multifamily property is a suburb where I can find a property in better shape and perhaps at a lower price with a lower mortgage .