Better neighborhood, should attract better tenants, better chance of appreciation. 

Having specific goals will direct your approach, whether it's increasing passive income, reaching financial independence, or diversifying your investment portfolio.A single-family house or a modest multifamily property would be good places to start for a reasonable investment.

Selling the lot next door to your rental property may 'de-value' it but it may also help to increase the vaule over-time as well.

The hardwood floor in the living room and bedrooms also appear as different shades/stains.We are not sure whether to just refinish the hardwood floors or replace the hardwood floor with vinyl.Does the (assumed) increased worth of hardwood floors compensate for the (assumed) loss of value due to the mismatched floor styles and materials throughout the home?

We always encourage investors to come to Birmingham and drive the streets of the area your agent is suggesting.From what I've seen, most investor-friendly agents will be suggesting C/D class because the yields appear most attractive to out-of-state investors.

Knowing the market rents, I submitted a rent increase to Section 8 and was granted a $300mo increase.

But I can tell you Sedalia is a very oil driven manufacturing center between caterpillar, Waterloo, Maxion, and Gardner Denver I would definitely expect housing demands to increase over the next several years because of Trumps policies.

I'm looking for a system where rent increases are frequent (commercial).  

The good news is that this is totally do-able, but you're going to have to play it smart by buying smart, ensuring as best as you can that this property can attract and hold good tenants.In the meantime, I wrote up a guide that teaches first time investors how to rent out their units from start to finish, no property management company needed.

Every year, rents increases, outstanding mortgage balance decreases, you may refinance into more ideal lending terms also.