Thanks Stuart.I don't think a "thesis" is necessary for real estate investing.Your mixing "thesis" with speculation and prediction IMO$1m in cash is retirement for someone that knows what they are doing in "low barrier" markets like you mention.Same can't be said for higher entry markets.Those that don't know real estate will loose no matter where or how they invest.Personally, I don't care about appreciation as I don't get out of bed unless I can net cashflow 20% net on a deal.For example, just bought a 6 unit in a B class area for $160,000.Currently occupied and renting for $3,000pm.Once minor rehab of $50,000 is completed, rents will be $4,500.I have an offer to sell as is for $250,000.ARV is $350,000.When interest rates go down, value will increase even further due to commercial lending being easier.No need for appreciation on such deals.I'll take them all day long over any appreciation potential.Again, just my opinion and each to their own.

After expenses and mortgage, I end up with a net cash flow of anywhere b/w $150-$250 which I find rather small, and I wonder if this could even get eaten up by tax filing time.

Investor B's goes up 10% and Investor C's goes up 50%!

This is a Class C area potentially moving up to Class B. 

One regarding what happens to the property if Couple A fails to provide enough funds and one exit strategy for if Couple B fails to perform the work.

The B contractors probably won't bid and most definitely will be scheduled many months out by the time you are ready for them. 

@ Janae B. ...

@Cory J Thornton what you are looking at is Class A properties.Those aren't cashflowing for buyers anymore due to higher interest rates (they haven't historically either).If you compare new construction to existing Class B & C properties, it's almost always cheaper to buy than build.

After that I'm going to tread water on buying C/B class rental properties.

We are about 60 to 90 days out from closing, but we have a gap to bridge between our B to C (Us to Builder) and A to B (Seller to Us) transactions.