In all honesty, this rental increase in a depressed area makes me wary that future increases will be more unreasonable and more extreme, and I should "get while the gettin's good."

Rust Belt (like you are looking it) is OK but pretty economically depressed.

When first starting out using a Buy and Hold strategy and with limited capital, do you think it's better to purchase a bunch of lower priced properties in lower quality / depressed areas or spend a little bit more but have less quantity or rentals (but presumably higher quality tenants) for properties in an area that is well known for being a "good" area?

It's a depressed economy and you're not going to be able to get great rents. 

It weighs you down and can result in anger, anxiety, depression, or other negatives.

Applicants seem depressingly casual about having been evicted previously.   

@David Butler is it high risk though (aside from a depression) in 2008 crash and years following homes here half the size of mine were still selling for 600-700k.....When I look at my worst case ( I would have to sell alot of my rentals to pay the hard money back in full) But other than that, I dont see much risk other than my profits beginning to dwindle to a 100-200k loss....

Nobody has a crystal ball but Grays Ferry is the most depressed of the markets you listed and therefore could theoretically appreciate the most if the neighborhood turns.

They are much less aggravating/ management intensive/ depressing to own, and provide much higher overall returns over time thanks to less churn and way more rent and value appreciation.

Then you put all of your income toward the HELOC and try to depress the balance as much as possible all month.