Developing Goals/Expectations and Initial Questions

[Justin McGonigal]

I've recently gotten more serious in researching real estate investing and taking a dive into the information here. I initially saw the idea via Morris Invest from a Twit podcast. I've of course since discovered the horror stories of Morris, but am happy it got me down this path. I then found Mark Kohler and saw all the potential tax benefits and all the things you can do to setup your family for the long term. 

I've come up with an initial plan getting into buy-hold real estate. I already have two full-time jobs (a 9-5 and then a side-gig in internet marketing/SEO/web design) so I have zero interest in flipping/rehabbing, etc which seem to be more labor/hands on. 

I have a good credit score (770+) and the only debt I hold is our mortgage and a vehicle. I have $20-30k to initially get started. 

With the fact that this would be a new venture, I've read many suggestions to stay in your backyard when doing purchases. With that in mind, I've started to look in the local (20-mile radius) of our area. In this, I'm finding very little opportunity, unless I just need more time/practice. Many homes that are in my initial price range do not pass the 1% test. Rents are $1,100-1,300 with purchase prices in the $170,000s. The only areas I'm finding opportunities are in the lower income (I'm assuming what would be classified as class D). Here I'm seeing $30-40,000 units with $700-$800 rentals. 

I guess I'm looking for input from folks that have been at this awhile. I'm assuming class D is more headaches then they are worth. Is my area just priced out of being a good investment for the time being? I would consider a light rehab, but all the foreclosures I've located seem to be full-blown rebuild projects which as I mentioned is above what time/money I'd like to invest. 

Thanks for any and all input.