Here’s a detailed breakdown of these two types of markets and the factors that contribute to each:Cash Flow Market, a cash flow market is one where rental income exceeds the expenses of owning the property (mortgage, taxes, insurance, maintenance, and property management), resulting in positive monthly cash flow for the investor.Key Characteristics:High Rental Yields: Properties typically have high rental yields compared to their purchase prices.Stable or Slow Appreciation: Property values increase slowly over time, if at all.Lower Property Prices: Generally, property prices are lower, making it easier to achieve positive cash flow.Higher Rental Demand: Strong demand for rentals due to economic factors, demographics, or local employment conditions.Factors Contributing to Cash Flow Markets:Economic Stability: Stable job markets and steady local economies that support rental demand.Rental Market: High percentage of renters compared to homeowners.Affordability: Affordable property prices relative to rental income.Local Policies: Landlord-friendly laws and regulations.Appreciation Market, an appreciation market is one where property values increase significantly over time, offering substantial capital gains upon sale, but rental yields may be lower, resulting in lower monthly cash flow.Key Characteristics:High Property Value Growth: Significant annual increases in property values.Lower Rental Yields: Rental income may not cover the monthly expenses, leading to lower or even negative cash flow.Higher Property Prices: Generally higher property prices, which can make it harder to achieve positive cash flow.Strong Economic Growth: Rapid economic growth, population influx, and development.Factors Contributing to Appreciation Markets:Economic Boom: Strong local economy with job growth and high-paying industries.Population Growth: Influx of people moving to the area, increasing demand for housing.Infrastructure Development: Significant investments in infrastructure, amenities, and services.Desirability: High quality of life, good schools, and attractive neighborhoods.I hope this information finds you well. 

A knowledgeable realtor can help you find properties that are well-suited for house hacking.I hope this helps, and good luck with your first deal!

I hope this finds you well!

This was because it was illegal to do so in the first place and the homeowner should have known this.

I rent nice places to renters all the time and they take good care of the property, pay rent on time, communicate well, etc.

I'd love to get some info about the Philadelphia market as well.

I must say that I am green to real estate investing as well, so any input that may be of help would be greatly appreciated.

Whatever rent income/expense we receive/incur, is it split the same % as well?

The area you love is loved by many folks and should do well if you can buy it right and get some decent terms.Reach out to @Avery Carl at the https://theshorttermshop.com/ They have the pulse on the Smokies as well as other areas.

If you have the hustle, you can get better cash flow using alternate rent models, but they require more effort to do well than managing rent ready LTRs.