There are great big and smaller cities to invest (Not Nashville -- to expensive)

What is the average acquisition cost of the houses?

Personally, I wouldn’t invest in a market where appreciation averages only 2%.

California where expenses are really high, versus like Ohio (etc), where expenses are really low.Using leverage is always going to make your buying power go further.  

But, these broad market studies are so large, they are almost meaningless, in the real world.Between glut of new supply in many "hot" markets coming online, a continually softening economic outlook, inflation over last couple years making day to day items feel cost prohibitive, many average renters are strapped and seeking lower cost housing.  

You didn't mention where you are operating, but depending on average home prices, I think you'll be ok.For instance if we're talkin $500k homes, and if you will get a 2.5% commission, split that 50/50 with your Broker, you will end up with $6,250 per sale, right?

I can only speak to Milwaukee, but on average the three distressed properties I have purchased over the past ten years have appreciated an average of 200% all while providing steady cash flow.  

The importance of lowering expenses and increasing efficiency to maximize property income.

This comes from several data points, the first being the average age at which people are choosing to stop renting and buy their first home.

Even if you only averaged 2.8% appreciation annually, which if you've had it 20 years I have no clue how that's true given prices have well more than doubled in that time, youre skipping over the fact that you have been benefiting from that appreciation on the ENTIRE house, not just the % you paid for.