Nowhere to grow in local market

[Ryan K.]

Right now, there are 28 MLS listings in my town. 6 are less than $500k (all condos/TH). Cheapest SFR is $599k; the highest price is a 11.5 acre ranch along the river listed for $10M (future development). Removing this high outlier, average list price is $1.016M, $365/sf. Not much out there!

I want to grow my portfolio (residential rentals, creating "passive" cash flow).  I'm sitting 6 figure downpayment, but there is nothing available in my market.  How do I put this money to work?