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.