Struggling with strategy - rural area

[Tim Y.]

Like a lot of newbies, I suppose, I'm struggling with choosing my strategy. Ideally, my model would be 3bed, 2 bath SFRs that could rent for $1K a month or more and that I could purchase/fix-up for $75K or so. But I have trouble finding those near me (I'd prefer to build a portfolio within an hour). I'm in southern VA, about 50 mins south of Roanoke and 75 mins north of Greensboro and Winston Salem.

20 mins from me is a blue-collar town with lots of homes available for under $40K. But rents in that market would be closer to $500. Still, you could easily beat the 1% rule, but, then again, how much cash flow can you really make if the house only rents for $500?

I guess I'm wondering if anyone does well focusing on areas where rents are only in the $500 range, or if I'm better off going elsewhere to get rents $1K and up.

[Randy Janoe]

I invest in whatever makes sense. Even outside of real estate (automobiles). Keep in mind HOA fee has to be accounted for, but for big cap ex items you would have to budget for anyway (such as a roof). You can pull retail condo listings off the MLS and generally meet the 1% rule. I also have a contact for property management, should you go that route.