That’s why Columbus is interesting—it’s one of the rare spots where you can still find properties in the 120–180k range that hit the 1% rule while benefiting from big appreciation potential.

I’d suggest looking around spots like Highland Square in Akron or the nicer parts of North Canton steady tenant base and good property manager coverage.

FYI- some areas do not allow conversion, so make sure it's allowed, before you get started.RE cost, chat with a few licensed contractors that would get the work permitted, and talk cost, and how it can be done for $25kIf you are not adding a bathroom, $25k becomes spot on and easy. 

I compare it often to Zillow Zestimates - Sometimes they can be pretty spot on if there are a lot of very similar comps in a tight area. 

@Krishnan Iyer is spot on, @Michael Lipari. 

Newton's law of tax: What goes down must come up.Everyone enjoys the sweet benefits of bonus depreciation, but what happens when you sell?

Here are actual numbers that I have on a 1 bed condo in Dallas I personally own and have kept for around 5 years:Rent: $1000Taxes: $157 (both county and ISD combined per month)Insurance: $94 (Travellers, im sure you could shop around and do a bit better)HOA: $200 (includes pool maintenance, water, 1 covered parking spot, and exterior maintenance) Cash Flow: $548 Even if your rent was $900-$950, which is quite low for a nicer updated unit, you could still walk away with $450-$500 a month.

There certainly seem to be a lot of RE investors content to invest in CA.In addition, when case Shiller used to publish their list of cities by residential return for this century the top 3 cities were San Francisco (which likely would have fallen from the top spot if a current lest was published) , Los Angeles, and San Diego.Past return is not necessarily an indicator of future return but has much changed in the fundamentals?

A good title company can help you spot liens early and save you from costly mistakes.

The key is finding places with year-round demand drivers (universities, hospitals, corporate hubs, outdoor recreation, etc.) rather than seasonal tourist spots only- Cash flow vs. wealth building.