You can't claim it didnt appraise - because it did - and the ARV could be negatively impacted by a whole host of things like possibly it being over-improved for the market.Should you had chosen to back out of the contract due to valuation, you would have had to provide a copy of the appraisal report to the seller and the seller's agent - and it would have been obvious that it had appraised at value (or contract price). 

I really want people to be able to do 10 year projections and understand the FUTURE CASH FLOWs, not just today's cash flows.It just makes you incredibly rich when you have all the information and have chosen the right area.But I do want to tell a little story when I was teaching back in 2006.Back then I taught my own classes in various private studios for classes.I taught in one studio while there were a lot of other RE related classes going on.The Math was difficult, so I never drew a crowd.However, the Cash Flow Now classes were Bigley popular.There was one that not only taught the Cash Flow now, but then chartered buses to take you to the best cash flow places.One of MY students decided to leave my class for theirs.Years later, he came back to me and told me ALL of those students were bused to Detroit and around Michigan, but close by Detroit to find Cash Flowing properties.You can envision the outcome when the Financial Crisis hit and Detroit eventually wound up going bankrupt.All those members of the other class had to do is look at the 3 big Auto Makers and know how bad they were doing to predict their future.

Many investors will set $100/month/door as a bare minimum to start but again it depends on may factors not the least of which is your chosen market area.I invest in B class multi unit properties.

House hacking is a possible alternative, but given California's high real estate values, investigating other areas may be a good decision.Houston, TX is frequently seen as a favourable alternative for out-of-state real estate investing for various reasons: Diverse Economy, Population Growth, Affordability, Landlord-Friendly Laws, Job Opportunities etcRemember that success in out-of-state investing often involves ongoing communication, local support, and adapting to the unique aspects of the chosen market.Good luck!

Do a considerable amount of market research, and know my chosen area very well.

Tenants must allow for marketing and showing the property regardless of option chosen.  

There have been instances where I have successfully closed deals by putting down as little as $100, while in other cases, I have chosen to deposit $4,000.

I'm sure someone here has chosen a smaller one and can share their experience? 

(different loans have different seasoning periods for your funds and different guidelines on allowing gifted funds - something to consider) To determine closing costs you can call a local title company in your chosen area and ask them for their fee sheet and your lender should be able to provide you with any other fees associated with the loan.

Consider your goals and how your chosen passive income stream can help you achieve them.