Type of house to look at for a rental property?

[Pavan Patel]

A buddy of mine and I are partnering up and looking to get our first investment property that we want to rent out. We're from NJ and we're looking in the central NJ area. I've done a decent amount of research last year about RE investing but I'm a little rusty so I'm not sure what sort of house we should be looking for. I know distressed homes are perfect for flips but what about for rentals? Do distressed houses work for those too or should we find something that needs only just a little updating? Does the 70% rule still apply for rentals too or just flips? Not sure what criteria to tell the agents I've been talking to. Also, our total collective budget is about $50-60k. That's the down payment + rehab + closing, etc costs. So we can probably swing something in the range of $150k-$200k I think. So a little guidance here would be appreciated here. Thank you in advance.