If the other answer is; through appreciation and mortgage pay down, then that seems like thin margins and speculation.

She had a bit of scope of work, but she based it off projects she has done prior, which isn't helpful because the margin of error (she's only been in this for about a year and a half) is still too great for me to trust the numbers.

And quite a margin between worst case and best case.

@Erica Kriegl I’m doing that in NJ although I’m mostly doing buy and hold right now because I feel like the margins on flipping have gotten tighter.

Hi Javier,You must have a deal with a lot of margin on the bone.  

Factors I'm aware of that might help determine the most efficient answer:-tax writeoff of interest portion of mortgage payment (most impactful during early years of mortgage) -margin of net rental income after all expenses -ability to qualify for attractive interest rates on additional mortgagesBasically I'm just trying to get the most bang for my buck.

Or I could do 10% down at 40k down which is more reasonable, bringing me to about $200/mo margin. 3) Hold.

My marginal rate is less than 25% so it feels like I'm on the losing end of taking depreciation deduction (I know it's not an option). 

I don’t think I’d want to delve into anything with lower rent than that just due to the low-rent demographic being hard to work with on smaller margins.

At the end of the day, ROI  is important, but most deals with enough margin, from my experience are off market.