If your goal is appreciation, you'll find markets that have very little cash flow (if any), and you won't realize your return until much later down the road when cash flow catches up or you sell the property.There are probably thousands of markets to invest in.

Quote from @David Hori: I've been vetting gurus to determine where an investment would return the greatest ROI. 

Many of which are savvy BP type clients who are doing updates/raising rents and then the buildings do cashflow positive even with lower down payments which produce amazing returns (at 3.5-5% down you get close to a 50%+ return a year just off mortgage paydown). 

After that is returned, I do a background check through Transunion or a similar service. 

If he doesn't need the cash now, you could also negotiate a split you're comfortable with to get him the return you and he feel he should have at the point you refi when the balloon payment comes due. 

You are not even scooping your initial investment so your cash on cash return is negative.

In terms of maximizing your returns you want to compare the interest to an alternative.

STRs can bring great returns but are higher risk and more hands-on, like small-cap stocks, while long-term rentals are stable and predictable, like large-cap investments.

- What does your 2022 tax returns look like?

The $1,500 net cash flow you mentioned represents a tightened rental return that could provide consistent passive income.