In this business you want to appeal to the masses not a niche so blend in. 

They simply park money for a return that beats inflation and look at equity multiple gains in 5,10,20 year outlooks unless someone comes along and buys them out for more than what they paid sooner.As mentioned you could also have someone in a 1031 looking at a huge tax penalty and 1 week left and decides a high value long term dirt play even if yield is not initially there might over time blend the return up so they go for it.  

@Edward Fedorovich, You're probably gonna want to rethink the 1031 angle or holding the property and blending that negative return into the positive returns on the rest of your portfolio as @Basit Siddiqi says.Because you're math is pretty right on when you also add the 11K ish of depreciation recapture mentioned by @Bill BrandtAdjusted basis is the cost of acquisition (32K) + capital improvements (20K) - depreciation (11k ish) = $41K.The difference between $41K and a sale of $325 is your gain - in other words sell and you may generate $108k of proceeds but you'll have a tax of somewhere around $47 K ish (thanks to TN being a tax free state).So selling without a 1031 will get you out of the mortgage but it will not let you get much of another property. 

However, if you are looking at the $500k you mentioned, when you find the Micro-markets that match your plan, and blend the MM and your Plan with the best strategy for that Micro-market and plan, it shouldn't take you more than a couple of years to achieve what you're looking for (or sooner).

This could easily turn into a thread of unparalleled nastiness.

Hi Sylvia,If it were mine,  (and if I wanted to spend the money):I’d leave it all white and,Put black shutters on all front windowsGet rid of the cement circle in the front yard.Berm the driveway with soil to the grade of the cement (liability issue)Paint the utility box on the left side white to blend in.Paint the front door blackPaint the breather medallion at the peak black(Spray) white on the porch railing and uprights.Add some  low maintenance evergreen bushes to the left side that are just above porch floor height.Rewire the over garage light to 3 lights (1 to the right of the front door, one on either side of the garage) and use brass classic looking carriage lights.Convert the over garage light to a motion sensor with 2 flood lights for tenant safety and tenant retention.Put Large Brass house number to the right of the door at an upward angle.Good Luck with your decisions!

Some markets are more of a cash-flow market, others are more of an appreciation market and yet others are a blend of both.

What is the blended and weighted in-place rent?

Lease options in all their forms, sandwich leases, cooperative assignments, pure options, and blends from all the above, all became my foot in the door and my calling card. 

Tenants above us spend entire day in kitchen by using mortar & prestle to blend spices and dropping things on hard floor.We have warned them multiple times, but usless each time.