I would expect a 7% appreciation in property value per year is also a feasible target - this is dependant on where you will be living.I have found multiple properties that are close to fitting this build for another client just this week.I would be pleased to connect with you to discuss further if you would like.Respectfully,Chris

Jack,Depending on where your comfort zone is there are a lot of great 2-4 units Multifamily rentals in other states that offer great rents at a lower price point. 

 There are advantages to both depending on your situation.

As long as you are negative cash flowing less than what you would be paying in rent, it makes sense (this depends on your market; I am in Austin, and nothing here has positive cash flow).

In fact, the willingness of a bank to negotiate on the price of an REO property can vary significantly, depending heavily on factors such as how much was owed on the property at the time of foreclosure and the bank's current inventory of REO properties.When considering an REO property, especially one that requires significant work like adding a bathroom to make it comparable to current 3/2 homes in the market, it's crucial to do thorough due diligence.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Typically investment properties requires 15%-25% down payment depending if it's a single family or multifamily.

Just depends on your goals.

I have a few places that I personally favor and some that I don't - but it all depends on what your goal and strategy is. 

It really depends on many factors what option you would use.