If you care just about positive cash flow (and you don't care about population growth, macroeconomics, or appreciation), definitely go with Cleveland.

At any rate, I will need to determine if I am OK with negative cash flow for likely 6-12 months before being able to raise to market rent(and even still may be near break-even or negative depending on expense/capex calculations).I will have to re-read your post a few times to make sure I comprehend it all.

Paid 390k cash.

I’d try to get more cash or buy deeper for properties.

For those of you actively investing in the Charlotte, NC market (or similar areas), what strategies have you found most effective for scaling your portfolio while maintaining cash flow?

@Michael Dahl Because of the reinvestment requirements, you couldn't take any of the proceeds without taking a bit of boot like others here have stated.However, if you completed your 1031 exchange then immediately did a cash out refi, that would allow you to defer all of the tax and depreciation recapture, but also give you access to some cash that is tax free.

Few properties these days will support a full cash-out, most won't even get a partial cash-out.

I’m considering a cash out refi. 70% LTV on a property that will likely appraise around $450K.

The cost to value and cash on cash (COC) returns can often be 200-300% higher in the Midwest when compared to your local real estate markets.

And because you can put so much less money down, your Cash on Cash Return is even higher.