Quote from @Dan Powers: New Western host an REI on Tap once a quarter located in Philadelphia or Media.

So location and type can be adjusted for whatever the market is speaking to you.And, from the perspective of developing your real estate career, the knowledge of the power of a 1031 exchange that you have can be a huge marketing advantage for you when seeking listings. 

$200k down can get you a $1 million mortgage/ purchasing power!

If, while running your numbers, the returns are within range to your criteria, do not lower the expenses to "make it work", but just know that some months may be higher, some may be lower, and if you have the cash reserves to support a higher bill or unexpected repair, then the underwriting at least helps you mentally prepare ahead of time.Any calculator, based on the inputs from any noobie or seasoned professional, will NEVER be the same as your actual numbers.

As for the cheaper markets, I would look to do mid term rentals in the Rust Belt near hospitals like the Cleveland clinic to maximize the income to help mitigate the downsides and unexpected expenses associated with those markets.

Leverage is a very powerful thing.

The house is clearly abandoned, as the power box is disconnected, AC is removed and someone clearly packed up the stuff. 

We don't use them as collateral, but we like knowing that if something unexpected comes up, our borrower can handle it. 

And all this in an inflation market meaning rents going up, values going up, as dollar purchasing power goes down. 

While cost segregation is a powerful strategy in the right situations, not all situations can benefit from it.