Less expensive markets under $50k for rentals?

[Victoria Gambardella]

I got into real estate investing 2 years ago purchased a condo and rented it out with positive cash flow $500 per month. This past year I bought a townhome and got roommates to pay the mortgage/taxes/HOA so virtually living for free relative to previous years. Now as I step back and calculate my next moves I realize I’m in a fairly expensive market I.e things costing $150k + which leaves for hefty down payments and more mortgages. I was thinking of switching my strategy to significantly lower cost markets I.e single family homes / condos / multi family in the range of $50k or less. Where I could buy properties outright,rehab for a buy and hold strategy. I realize this often comes with big risks: tenants in lower income neighborhoods, sometimes higher crime rates, trouble finding contractors willing to work in these areas due to crime rates, possibly working with section 8, etc. Are there any markets people would recommend that are looking primed for gentrification or would fall into these categories? I’m considering Trenton NJ but would love other perspectives and rationale for markets to consider. (Side note: I’m currently in Burlington VT, spent time in NYC area, and originally from Philadelphia suburbs would prefer something in an 8 hour drive but it’s not a deal breaker if it’s a market further out would just need to feel comfortable managing from afar).