Can anyone tell me what is a good rate of return for a rental in Marietta, GA?

The previous owners had law students in it, so it's not out of question for students, but could very easily appeal to a family.Here's the deal with Lubbock - it aint that big ;) (pardon the colloquialism).  

@David F. have you had this property long enough for it to be claimed on your tax returns?

Basically, it's as if she and you are both starting at the beginning of your RE journeys, to find out whether she/you would be better off investing for appreciation (eg. buying property that should be ALREADY worth more than you pay for it, AND it's due to keep going up in value too, but, won't generate much net cash flow), or, buying for cash flow (in areas where appreciation has not happened historically, but are still golden egg locations for double digit net rent returns). 

Since you wanna work on building your passive income that means that you are looking to acquire rental properties where you will make a good return on your buck.

As you can imagine the low fee listing companies want easy buyers and to do volume to make any kind of return.    

Additionally, the market is reaching the slower season so the anticipated rent has been slashed dramatically.Current:Price: 153k ($42k into deal)Anticipated rent: $1,650/monthOperating expenses: $8.5k / year (includes management, cap ex, vacancy, taxes, insurance, etc.)Cashflow: $2k / yearCash on Cash return: 5%So what would you do?  

I filed my 2015 tax return and showed my tax preparer I prepaid the pmi.

My strategy is to exit in 3 years.Based on my calculations, it will generate 3.7% cash-on-cash return in the first year (with an aggressive expense estimates) - I am betting on the appreciation value than cash flow.

@Paul Bryzek There's a triplex here in San Diego that has good returns but FHA won't lend due to its condition.