In my market there are plenty of options for positive cash flowing properties within the budget.

Positive and negative experiences welcome. 

@Robert Davis IIIOut of state is a great thing, if you live in California :-)It is defiantly doable, I know many people who have their entire RE portfolio out of state or out of country...Now , with all that said , if this is your first RE investment then for sure you have to visit the area, and get the local insight, plan your trip ahead and have everything lined up:Several "potential" properties that you would consider investing in, tour them real good and grade them for yourself ..When you visit these subject properties make sure to blend in as much as possible with locals , neighbors, mail man and everyone in town that will be happy to discuss and contribute REAL local insight ... at this point I would not take advice from anyone that is talking from position...

If someone is wanting to partner with me on a real estate deal but he is looking for properties to add value and have appreciation to potentially sell and I am less concerned with the value as long as it cash flows positively, is there a way we an align our goals to work together? 

Anyhow it feels good at times to help them keep their place,  especially the ones who truly deserve it and would face almost certain foreclosure, thing about the loss equity they lose, the credit impact for several several years to come. but we can't help all of them unfortunately our of hundreds of thousands in virtually every state across the country, but we try.

There is a deal out that that you can get a positive cash flow on and if you lock this up you might miss out on the next one.

Those are typically scraped by a deleader.  3) Lead paint on Moveable/Impact surfaces. 

Daniel, considering your timeframe the positive cash flow and the fact that you’re not reporting to any investors, you’ll have very little stress with what you’re thinking.

The refinance would increase the mortgage every month, but I have room to work with on the property so it would still be running cash flow positive.  

When the time comes where you’ve paid off your debt you will be in a much better position to invest wisely!