Hi @Mikal Lewis...Welcome to Bigger Pockets. 

I live in Auburn Alabama and the market here is pretty crazy so I have been looking at surrounding cities like Montgomery and Birmingham that are bigger and more affordable.I know that the typical down payment someone’s needs for commercial is 25% so short of me getting seller financing, or a partner, or some other creative finance path my purchase power leads me towards properties that are typically in lower income areas- at least for the ones I’ve spotted. (200K ish) I’ve listened to pretty much every podcast multiple times and often hear people saying that when they begin they focus more on cash flow and as they grow they look more towards appreciation opportunities.

And then do the bigger project next spring/summer.

Yes, they can still try to leave before the year is up but I have policies to reduce my risk and loss if that happens. 

This is a tough decision since the numbers make sense; perhaps I'll just go ahead with the Phase I that way all bases are covered and in the worst case, there'll be a loss of $2500 if I walk away after the Phase I is done.Thanks for both your answers.

Once your successful you can make up the loss later.

Wholesaler possibly, rookie investor possibly, or an experience builder who has a different exit strategy (build bigger for a better ARV, subdivide lot and build 2 houses, raise the roof and double the square footage).  

@Sandy G. love your mindset and going bigger.

@Javier DiazWelcome to Bigger Pockets.

@Quin SimpsonWelcome to Bigger Pockets.