Separately, if you're doing that much reno my guess is you will need to kick out the existing tenants so your first year return will not likely be that high.Assuming you're going to be living in this property for a year or two, you may want to forego the property manager.

If you pay cash and therefore don’t have a mortgage you can make a good return but not enough to let a couple hundred grand just sit there.

Taxable to you and the interest is reported on Schedule B of your tax return. 

I'm ready to buy in KC as an out-of-town investor but soon-to-be returning home to KC (military).

Again talk to your CPA and mortgage broker now about next year's tax return.

If it's the return you are more concerned with, you're probably looking at average 6 or 7 caps which may also be the case for many markets across the US, unless you want the higher risk that comes with 10+ caps like venturing into rough D class neighborhoods or go into markets that are much smaller, unknown, or worse  in population decline.  

In mean time, they are still getting thier agreed return they were happy with.

Where’s some of the best places to find real estate to invest in and have a positive cash flow and good equity and return?

Because it often has an interest rate of 15% + and every dollar you put into that is essentially a guaranteed 15%+ return.

You can always go to your bank and have them send a denial letter for the loan, saying that they will not lend you the money due to the property not appraising for the value originally applied for. they then have no case against you and also have to return your earnest money.