Both are walkable, both will produce good returns, but the Raleigh property is in the some what rough part of downtown Raleigh, and would need some repairs done.

But first and foremost you should be concerned with which markets are producing cash flowing properties.

I have purchased cash neutral RE that has produced fine return (and my definition of fine return is far in excess of 5.76% non-compounding).  

Specifically, I'm looking for a property management company who comes highly recommended, is responsive, professional in every way, and a real estate agent who can help me find specific types of income producing properties.

The properties aren't in the best of shape nor are they in a great area but they are in livable conditions, occupied, and producing about $1200-1300 a month all together. 

With 20% down, it would likely produce around $200 positive cash flow right off the bat.  

He is probably right as it is a really competitive area with houses tough to get in there even fixed up and ready to go.I am beginning to see that MLS might produce a deal here and there, but most likely it is going to have to be those off-market deals with a motivated seller as you said.

@Monique ODell I would purchase 10 - 200 unit complexes that produce 500/monthly cash flow on each door.

Do you believe that the increased demand for multi-families opens up opportunities in other income producing asset classes  (i.e. storage facilities, retail centers, industrial properties etc.)?

Given that we can field only such a low amount to purchase properties that we want to buy and hold to produce a stream of income, we are having trouble finding (as one lending company called it) the "unicorn" of funders, someone who would be willing to finance up to 100% in some deal created for this purpose.The properties I am looking at range from 65k to 109k, so we've been looking for anywhere between 70k for 1 property to 440k for 5 properties.