That's an illusion masked by the use of percentages. 

Ill use 6% for conservative estimates.Mine will be an A property since its a new build in a B class area.

This is an older property that looks decent on the outside but I’m under no illusions that this will be an easy rehab.

Faster if you can.That 40% you put down, to get higher CF, is an illusion. 

That increase in cash flow due to a higher DP% and lower mortgage % is an illusion...and working backwards. 

It also makes the tenants feel I actually care about their future, which is very much an integral illusion that has to be maintained in the sort of profitable landlord-tenant relationship I'm looking to build.

I’m trying to decide if I should try to hunt for illusive deals here in the Denver area or switch my focus to out-of-state, although distance investing as a newbie scares me.I know COVID-19 my be a game-changer, but I'm wondering: What strategies are working for you in Denver and surrounds?

Maybe then I can find some gems in these areas, but in the meantime I have a feeling (and hopefully it's not just an illusion) that other markets will offer better cashflow. 

@Damon Decker The problem with rules like 1% rule are that they create the illusion of deal or no deal just from one rule, and those rules really only apply to markets in the Midwest and South where you can buy houses for 100k and rent out for 1,000, but the appreciation won't be nearly as high as a place like Denver long-term most likely, and also, you are dealing with property management 2000 miles a way. 

I have a really cool idea with preforeclosures, but im keeping it quiet. at least for now.Firstly because ive never heard it before and Dont want to put bad (possibly illegal) information out there. and secondly cause if its amazing, Ill use it to get started in REI.