@Jinglei Shen depends on the builder.

Just choose somewhere in the mid west were 200k buys you a very nice livable home.

It also depends on whether your next purchase is a rehab, turn key, flip or hold.

If you pay retail, you'll be looking at 500k to 550k depending on area and lot. 

You should definitely be able to find decent multifamily properties for under $200k, and multifamily would be my suggestion for starting out if you can swing a larger down payment (depending on loan type, you MAY need 10% more for a multifamily vs a single family, but not always).

Either they choose to move out or you get paid for the “hassle factor”.

These have a much higher CoC ranging from 18-30% depending on how involved you are, the property specific and its execution from a design/amenity standpoint to management.  

We will never have the right answer; everything depends on your circumstances.

So for $400 they can buy 1% and depending on the rental rate of those homes, they receive the applicable % of the monthly cashflow as passive income.

from your experience do you know if appraisers would choose closer comps but adjust a different search criteria such as a lower br/ba criteria and adjust the arv by 5-10k on a lower lower room or bathroom count or would they prefer a property further out just to match that criteria. this is probably a case by case basis.