Many investors from California are choosing to invest in the Midwest because of the low barrier to entry and yearly cash returns making more sense in these lower priced markets.

Purchase price: $225,500 Cash invested: $125,000 Sale price: $600,000 Mont Clare area of Montgomery County.

Cash flow, long-term appreciation?

Will be paid in cash.

Total build costs of 600k )this includes lot, soft/hard costs, and 60k overhead recovery to my construction companyAmortize @ 20 years, all expenses equal gross rents so break even cash flow.

If you use a Cap rate of 7%, the $702 cash flow on one unit becomes $10,000 added value. 

I will need to finance most of the purchase, but if my numbers are correct, it would still generate cash flow even with 100% financing.

Have any of you ever had a tenant offer to pay you 12 months upfront?

When it comes to cash flow versus appreciation, there's a bit of a trade-off.

.- I have about 150K available for a down payment, any suggestions on the type of property to target (cabin, condo) if the goal is to be around cash flow even?