I'd recommend including both principal reduction and predictable future appreciation in your return calculations (along with the cash flows).  

The midwest property returns enough cash flow to pay off the mortgage fully in 10 years if all positive cash is reinvested into principle reduction.

Selling the cute little rental could mean some debt reduction and other opportunity, or it could mean disaster, if I dont play the cards exactly right I will not be able to afford my own home mortgages.  

Jeff it's simple.If they have 10 other investors willing to buy and take less margins then it will be much easier to get the seller on board and close it and make the commission.If the agent has to get a big reduction even if your numbers are right it makes the deal going through a long shot.So the broker/agent wants the commission and you want to buy real low to make great cash flow.Those can be at odds sometimes.

Basically,  the reduction request was denied  3 times and each time  I asked for an appeal.

No reduction in sight.

Summary of rules for Qualified Opportunity Zones (“QOF”): 1.Gain from an “unrelated” party sale or exchange of property2.Investment in a QOF within 180 days of the sale or exchange of property3.Gain is deferred until sale of the QOF interest or December 31, 2026, whichever is sooner4.10% reduction of gains deferred if QOF interest is held for 5 years prior to sale or December 1.31, 20265.15% reduction of gains deferred if QOF interest is held for 7 years prior to sale or December 2.31, 20266.If the QOF interest is held for at least 10 years, the basis of the investment will equal the 3.FMV of the investment as of the date of sale or exchange (“FMV basis election”)Example: An investor, Z, sells stock, realizing a $500,000 capital gain in July 2018.

Aside from it being the cheapest option (i.e. the lowest down payment) and the reduction in living expenses, it is the easiest way to get your foot in the door, which IMO is the most important part.

Rent reduction until a job is found.  

If it doesn't cash flow, you have limited your return to principle reduction on your mortgage and appreciation.