I work with out-of-state investors who are selling distressed properties, and what usually separates the wins from the headaches isn’t the asset type so much as neighborhood selection, tenant screening, and property management.Since you mentioned exploring Chattanooga as a possible relocation, self-managing at first can be a great way to really learn a market, screen tenants well, and keep eyes on a property in ways no PM ever can.

With standard Midwest expense assumptions and professional management, net cash flow still pencils out solidly without aggressive underwriting.The bigger drivers I’ve seen are:submarket selection (working-class, low-crime pockets),realistic taxes/insurance,and having boots-on-the-ground management you trust.For a ~$600k exchange, I’d be looking at small multifamily or strong duplexes where you can preserve cash flow while improving return on equity, rather than forcing higher leverage.Happy to share what’s worked (and what hasn’t) if helpful.

Tools like Rentometer or PropLab can help cross-check rent estimates quickly, or just scan Zillow/Apartments.com for similar active listings.One thing to consider with the house hack math: your $1,400/month effective cost assumes the 4-bed stays rented consistently and you're getting that roommate.

You’re asking the right question, and the answer isn’t cash or HELOC, it’s liquidity management vs. interest arbitrage.A few observations based on what you shared:• At a 12% tax bracket, the psychological benefit of paying off the primary residence may outweigh the tax math, since that interest is effectively non-deductible anyway.• However, paying off the house first and then relying on a HELOC introduces call risk.

@Lauren Kormylo Airbnb takes 15.5% from PMS users as well, effective December 1.

Each upgrade was selected to align with local buyer preferences and market pricing.What was the outcome?

Any cost effective training mentorship programs you can suggest for beginners of MFH.

Here's what I've found works:**The core issue with ANY software:** No tool is 100% accurate because ARV depends heavily on comp selection - same bed/bath, similar condition, recent sales within 0.5mi.

Happy to help provide insight or guide with market selection and cap rate expectations. 

As a small time investor I'm really timid to select a deal... what if I get it wrong??