@Nate WilliamsWith one income, two kids, and limited cash flow, minimizing risk is key.

They are usually looking at C or D properties that local agents tell them will “cash flow“ They usually don’t cash flow because of high maintenance and vacancy.

Are you cash flowing the property?

Or just any suggestions for the best bang for your buck areas that offer at least a little cash flow and appreciation ?

Hello Zachary,  You are correct in looking at the Mid-West for cash flow. 

We have 40k in cash and 100k equity in our current residence, but we don’t want a larger house payment than what we have already.

Purchase price: $95,000 Cash invested: $30,000 Buy and Hold.

Sounds like a cash out refinance would be the best way to tap into that equity. 

Are you sure the area supports an ARV of $150k?

We're an appreciation market, not as much of a cash flow market here, unless you're putting a large down payment or actively managing STR's.Buying out-of-state can get you more cash flow, but the tradeoff is less appreciation (usually), and cash flow can be eaten up by maintenance and expenses.