What type of SFH do you invest in?

[Bryan Cheng]

Hey all! 

I’ve been going to multiple showings every weekend in Houston with my realtor to give context as to where I am in this process. 
I understand that C class properties are generally the best middle ground when it comes to quality vs cash flow. If I’m not mistaken, most properties I’ve been looking at (C class) range between $165k-$200k with rents ranging from $1300-$1900. 
Playing around with numbers using first time home buyer down payments of 10%-15%, after monthly expenses includes taxes and insurance, I’m struggling to find anything that cash flows. Most cash on cash returns on the properties I look at are about 3%-5%. 
Being its my first property, I’m looking for homes that won’t require much rehab. 
This makes me wonder:

Am I looking at the wrong market? 
- I see a lot of investors look for $100k properties and then put in rehab. Are the discounted, run down properties what I should be looking for?

- Are the $165k-$200k move in ready properties with less than 20% down just not meant for good rentals/investments? 

Is it the high interest rate of the economy? 
- Obviously lower rates will improve my return but my concern is then that home prices will increase and then the “move in ready” homes im looking at in this price point will jump and be replaced with terrible homes 

In short: 
Should I be putting more cash into the property to improve monthly returns? (Higher downpayment) 

What kinds of properties do you look for as an investor? At what price point? 
I’m probably not providing all the information needed so feel free to ask for more details or make up your own numbers - mainly looking to learn about broader RE investment concepts for starting out.

Anything is helpful, thank you!