Higher end rentals

[Michael Peterson]

Please help me to understand why it appears that no one targets the $1000+ per month single family rental properties at least here in central Texas.

Everything appears to be geared towards $30k houses renting for $600/month. Which I understand and appreciate. However, what is the problem with buying $100,000 homes renting for $1500/month(I know 2% rule)? Cash flow might be marginal but what about appreciation? If your buying $100k house that is in a good up and coming area that will double in value over 10 years doesn't that have value? The $30k homes I see on the market are not going to be worth much more than $30k in 10 years in my opinion.

I understand the majority of renters in the market are looking for rents under $1000/month.

But is there a market for $1500/month rentals in nice neighborhoods with quality schools?