I've just seen a lot of rapid turn over. 

So, your plan is to find and purchase a cheap property (those are the kind of properties that have high day 1 cash flow), with no prior history of appreciation (which is why it is cheap), that would magically start appreciating rapidly the day after you close escrow?

@Michael Cohen,Yes there are what is known as "weighted" scores.

I think you should weight the two before making a move to sell. 

Therein lies the grey area.ANY feedback to this is worth its weight in gold.Thanks in advance,Scott

I am still in the cash flow building phase of my overall investment philosophy, i.e. financial freedom, so I would be targeting markets that yield better cash flow rather than rapid (and precipitous) appreciation.

Running a pro forma analysis on each scenario will produce a result for both structures which will allow you to compare and weight the risk/reward to you (and your friend) and make the call on which structure works best for you and him.Hope this helps clarify things for you.

Where I invest in SC, the rents are increasing so rapidly that some tenants are asking for 2 year leases but the only way I would sign one is if it provided for a higher rent in year 2.

I'm not sure which cities are best because I am in the same boat as you minus the cash, but saving at a rapid pace to get there.Also, great job renting out to your friends and limiting expenses.

Seattle came in second at seven days, and Grand Rapids, Michigan; Portland, Oregon; and Omaha, Nebraska; rounded out the top five.On the inventory side, Rochester, New York, had the largest decrease in supply of homes for sale, down nearly 36 percent compared with a year ago.