Also the area that has potential for appreciation is likely in higher demand, meaning you should have less trouble renting it out which translates to lower vacancy and rising rents over time, whereas the cheaper properties you may not see any rent increases and possibly even rent decreases in the coming years.It's hard to give a firm answer without all of the facts, but I would lean towards peace of mind and ease of management over an extra $50-$100/month in cashflow.

I was hoping to get some experienced investor opinions regarding the concept of receiving less cash flow( but still positive), for the potential of a huge increase in value not so far down the road.

Room for a little revenue increase and can back out 6 % for management in those figures.

You will also be subject to the whims of future policy increases which may adversely affect you with respect your competition.

Some thoughts, but this might be more personal preference: I don't see property management fees, maybe you will do it yourself, but you should consider your time.I would want to be comfortable with market (are jobs increasing is housing market stable etc.).I assume AM means adjustable mortgage?

- I've never seen that before.I will check into rates of increasing property taxes, and utilities.

Meanwhile flipped homes were still purchased at an average discount of 13 percent below market value in 2013, the same average discount as 2012, indicating that investors are finding discounted buying opportunities outside of the public foreclosure process — particularly in those markets with the biggest increases in flipping for the year.”Major metro areas with big increases in home flipping in 2013 compared to 2012 included Virginia Beach (up 141 percent), Jacksonville, Fla., (up 92 percent), Baltimore, Md.

Hi,My wife and I have bought all of our homes since 1996 with the intention of increasing it's value and, thus, our net worth.

I know part of the increase is from the rehab - but I also think we bought it at least 100k under market.This was our first rehab and while it is not an area of business we usually do - smart buying really paid off for us.

Due to upgrades I did and rising demand I was able to increase the rent $150 per month and now it is cash flowing.