If there are any other areas or other states that offer similar or better potential, let me know.AZ: Chandler, Gilbert, MaricopaNC: Raleigh, DurhamKey factors: Rental breakeven and price appreciation, looking to hold the property for atleast 10 yearsPrice range: $350k-500k with 100K downpayment.

The restaurant going under is definitely the biggest risk.

I plan to spend more in master with nice bed (king+) in there with a queen then potentially bunk versus two twins in third bedroom. 

If it concerns you that much, adjust the purchase price to take into account this added risk. 

This is the reason why it's good to share potential deals with a trusted team and get feedback, just to make sure your assumptions seem to be shared by others.Hope you keep us posted on how it goes!

Cities like Cleveland offer affordable properties, strong rental demand, and solid cash flow potential.

You may need a Phase 2 as well in case Phase 1 finds potential concerns (say, issues due to a nearby Gas station).

I'd speak with your accountant about the potential tax consequences.

Any suggestions on how to get started, some risks to be aware of?

I can see the value in what you’re doing in the rural southeast—new construction in those areas has a lot of untapped potential, and I like how you’re handling the financing with Fannie Mae assumable loans and light debt.