Pivoting form original investment goals/adjusting to 'this' marke

[Chris Burcher]

So we (my wife and I) have made a concerted effort over the past 6 months or so to invest outside our small, rural local market in Charlotte, NC - a very competitive market with low supply/high demand. We originally were focusing on 2-12 unit mfh to rehab, raise rents, and force appreciation (BRRRRish) to generate cash flow in the near term and equity long term. We built a decent team in Charlotte with two investor friendly agents, but have not seen any off market deals, only MLS. Interviewed several other agents, but were not taken seriously. We will total 5 sfh soon locally for REPS purposes and cash flow, but our local market is not likely to appreciate nor cash flow near as much as Charlotte. We have heard 'you can make money in any market' but the numbers look way better in charlotte and we would rather invest there - IF we could get properties.

We have been considering a sacrificial pivot to buy properties that won't cash flow very much (but more than break even) in the near term to capture some of the other investment benefits over 5-10 years. First we were considering older, cheaper sfh in Charlotte that wouldn't cash flow very much (1-3%) but would *likely* have good rent and price appreciation. But in doing so we realized that new build mfh and sfh could be had for comparable prices. For example, sfh in charlotte suburbs can be had for $120k plus rehab and get market rent - maybe a $40k investment out of pocket. Well, new build comparable sfh can be had for $190k or $40k in with 0 rehab. Meaning it's a wash which we choose and the argument being in favor of new build for decreased maintenance and capex 5-10 years plus being more attractive/rentable to PM and tenants.  

Of course, neither of those scenarios meets our original goal/criteria of 4-12 unit mfh, and the new build loses the forced appreciation and tax benefits. 

My question is, am I gaslighting myself into sacrificing our goals or are these reasonable short-term pivots in 'this' market of low supply and seemingly insatiable demand? The COVID horizon seems to be in view and maybe we *should* wait it out, but who can predict how long the supply/demand ratio will persist? What's more important, sticking to our guns (mfh BRRRRish) or pivoting to keep moving forward?

Thanks wise ones.