Cash flow vs appreciation (out of state)

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I'm an agent and just starting to look at doing out of state buy and holds. My plan was to purchase a couple houses at a lower price point, put larger down payment, cash flow, than let that sit to reinvest into new deals. If I can buy 2 or 3 for a few years, I should be able to multiply faster. I'm thinking in the 150k range. My question is, is that short sided? Should I spend the extra in better markets that have a higher appreciation, or is it ok to use cash flow to slowly work into markets that cash flow less but have better long term benefits? I have a renovation background, but I'm not really trying to play the value add game out the gate in markets I don't know. 

[Jules Aton]

Since you are an agent I'm guessing you know the pros and cons of the options. Personally I don't want C&D properties and rarely B either. Generally my cash flow is more modest but with reduced tenant drama and an anticipated appreciation as well as ease of resale.