Buying in a depressed market

[Brad Kirkwood]

Hello everyone!  I just joined BP 2+ months ago and have been listening to every podcast and reading whatever it is I can.  My question is, what are you thoughts on buying in a slightly depressed market?  As for my area, home prices range between 50k - 120k  with most being 30+ years old.  Rents range from $400 - $700 for 2 br units/small houses.  The area is located about 30 minutes from a large city (Pittsburgh).  There never was really any boom or bust and it seems that Pittsburgh is starting to slowly attract more people to the city.  Where I am located (North of Pittsburgh near Kittanning), very little seems to change - no new businesses.  I will mention that the area has a highway that runs directly into Pittsburgh so that is a plus for the area.

The low rents were nice when I had to pay them but now that I'm considering becoming a landlord, I can't quite understand how these folks can make any cash in a market like this.  I don't have much cash at the moment because my wife and I just bought our first home 2 months ago but we could have 5k or so set aside within a 5-6 month period.  If you need more info, please let me know but I'm very curious to find out what the community thinks.  I appreciate your thoughts in advance and am totally digging bigger pockets.