Purchasing a duplex that is an "ok" deal to live in

[Matthew R.]

Hello all,
First post here on BiggerPockets.  I've connected with a few of you on here in otherwise, but now I'm looking for some opinions.
My wife and I currently rent, with a clause I inserted that lets us out early any time after December.  So, we've been looking both at potential rental properties along with duplexes we'd consider living in.  We have enough cash to purchase a small house at wholesaler prices, as well as finance considerable renovations.
However, I'm a little leery to put most of our cash out there right away.  An alternative we've considered is purchasing a duplex to start out, specifically one that doesn't need considerable renovations; it would, of course, cost more initially.
So, without being in a rush, but certainly wanting to start moving forward both with owning our own residence and with investing, how tight should we keep the numbers when considering such a duplex?  In the market here, and in the areas we would personally live (due to work, etc), we've not found places that would fit the 1.5/2% rule.  Should that be as strong a consideration, assuming we'd happily live on one side of a duplex for 2-3 years?