Making the jump for my first property

[Peter Vance]

I am a young professional looking to get started in REI. I just recently built a new house and we had our first child. I have a solid full-time job, with a fairly decent amount of investments. I would like to get into single family rentals to start out as I am currently tight on cash. I have been working with local community bank lender on some options for a loan to get started, but I know I know it will be small. I've thought about looking into some foreclosures or other houses around $30k-$50k with a little bit of work. I live in a smaller city in Mississippi with some of the smaller towns having the better deals, but less people.

My question is should I look for houses in a better town, but are of less value, or in a smaller town, better location, but less people and therefore a possible harder time to find renters?

Also, if you are strapped for cash, what is most important? I feel that if you can get the loan and set the rent to provide at least $200 in cash flow a month after all expenses, it is most important. Am I wrong?

Thanks and I love the site and the community.