I prefer to start in the Midwest, because the entry point is much lower and cash flows the best.

I think I want to start with cash flowing properties, and then using that cash flow to purchase appreciation assets in states like CA and places with a larger barrier to entry.

This can also help cash flow higher until you refinance down the road for cash out or lower fixed rate.

We are in search of cash flows, but also plan to hold and build equity. 

Personally, I am always buying for cash flow.

Is there a specific/ideal template that is the most advantageous in consideration of tax advantages, etc.? 

While touring the house I was wondering if there was a quick formula depending on the condition of the property that I can use to get a estimate of what my "investor" will be paying to rehab so I can take that into consideration while making my offer to the "Seller"

This is because typically, renters won't put as much care and consideration into the floors of their unit.

It does seem like a hard promise to keep and with the interest rates, there is not much that is cash flowing right now, especially new builds. 

I'd suggest investing in multi-family units that cash flow off the bat and are in an appreciating market with a growing economic base.