Seeking input/ advice on where to purchase

[Travis P.]

Newbie to real estate investing here. I’m seeking input from more seasoned investors. I’m having a debate with my business partner about where we should invest. Partner wants to invest in a more expensive state which makes some sense for appreciation value but it would take our whole down payment account to buy one decent house. The positive cash flow would be of slim margin. 
I’m thinking of investing out of state in a less expensive area where our down payment account could buy 3 to 4 older, but remodeled homes. By the comps and discussing with property managers in my desired areas these homes would bring in roughly 9percent positive cash flow per year. The down side is that the appreciation isn’t as much as it would be in a more expensive state.  
So the question is should we sacrifice positive cash flow for appreciation or appreciation for cash flow? 
any input is greatly appreciated!