Relationship between res. appreciation potential & cash flow

[Gary Dezoysa]

Hi all,

Let's say I'd like to build a portfolio of 25 SFRs in a median income area with plenty of 3/2 1,300 sf houses. If I'm looking at midwestern markets, is it a fair bet that the area with $60,000 houses will have low appreciation potential and another area with $100,000 houses will have better potential? Or is this not a good shortcut mindset to follow?