Have properties in that area historically appreciated at 1% over inflation?

The cash flow without appreciation markets (i.e. the Midwest markets) have a hard time scaling with inflation, is too small cash flow to make a significant impact to CA investors, can be a pain in the butt (building trusted team, potentially poor tenants, potential hidden cap expenses, potential Mother nature issues, etc.).What is good cash flow after all expenses in the Midwest after accounting for all costs including cap expenses? 

Its just a number, but as you pay 25% recapture when you sell you usually try not to inflate it.

The only subjective area is just how much you can maximize the travel benefits (assigning a dollar value to your points) and how quickly they will be devalued by the travel companies (it is inevitable like inflation, but how much and how soon is unknown)Very generally speaking, the best cash back cards provide better rewards than travel cards, however signing bonuses tip the scales in favor of travel cards for the first few years.

Dallas can’t keep up with the population and prices are inflated.

A big thing people don't seem to understand with this is that you're getting the deduction in today's dollars and paying it back in future dollars which are worth less due to inflation. 

Historically the S&P 500 has returned close to 10% (7% after inflation); not a bad return for a very passive investment. 

a wholesaler who is trying to sell you the property is going to leave out the "expense reserves" you mention because it inflates the "Cash flow" and makes you more likely to buy it.

My initial impression is your revenue expectations are probably a little inflated. 

My experience with most wholesalers is that their ARV is usually massively inflated and the repair coats are massively underestimated.Personally, using the free websites : Zillow, Redfin, Trulia all in combination is enough for me to run my own comps.It might be different in your state but in NJ, there is really enough sales data point to draw a  hard line.