I want to buy in Cleveland for lasting cash flow.

[Steven Holiday]

We are in central Calif and rent our current residence because we can rent for cheaper than buying.   We weathered the crash and are breaking even on a rental we own (25 percent, 50k in equity) in another city.  I'd like to enter the Cleveland longterm, buy and hold market, but we will only have about 5,000oo cash for down payment, reserve, etc.  We're looking at the 50k range either retail or finance the buy and rehab deal.  I'd love to do a 30-year fixed at that down payment, but the deal I'm getting so far is like 20% down and 6-7000oo in reserve.  That's not going to work.  I'd like to keep the Cal property if possible, but I'd consider a 1031 exchange.  Line of Credit might also be an option, but I'd eventually want to refi and might run right into the same situation.  

Any thoughts? 

Thanks!