Once again you were very helpful -- thank you! We are evaluating a combination of two strategies; buy and sell (to generate additional cash) and buy and hold (for cash flow and equity). Do you know of any good real estate investors groups in the area?

A 3/2 single family is always your safest investment. There are alot of townhome/condos on the market. You can get into them for a good price but I doubt they would appreciate like your single family. Depends on what you are looking for. If you don't care to sell for years you could go the townhouse route and possibly cashflow for a long time. single family would be an easier re-sell down the road but your going to pay more to get in probably and you may not be able to cash flow as easily, depending on your downpayment

Thank you for your response and helpful suggestions. Since you are experienced in the area, are single family three bed/two bath the highest demand rental in the area or are duplexes and townhouses, for example?

I'm a realtor and also an owner of rentals. I usually check Craigs list postings and I drive the neighborhood and check out other rentals. Make the call and find out what landords are asking... old fashioned way but reliable. I'm going out with a buyer today to check out a neighborhood he is interested in. He's looking at a duplex.