I will probably also end- up targeting 'undesirables,' either way.

Beyond that, though, there's not enough peripheral business spinning off of the university to bring new life to the city, and values have suffered.I'm moving my attention to Blacksburg and Christiansburg.

Anything that IS in the range I'm looking at is either an apartment or in a relatively undesirable area. 

@Shane M. the $60-75K will get you into a decent neighborhood, just make sure you don't get too much lower on purchase price as you'll start getting into very undesirable properties.

I don't know the areas so they could be pretty undesirable so this would require more time researching and traveling getting to know the market.What mystifies me though is how people manage property from afar.  

@Andrew RoysterGetting your real estate license can carry some undesirable baggage. 

In a different part of town, the owner may accept that price, but once you own the property, you may find the area is undesirable and it is difficult for you to easily find high quality tenants.

What I've learned through the BP Blogs and Forum posts is that the more leveraged you are and less equity you maintain then the more undesirable you become in a lawsuit.

Have any adjoining areas become blighted or otherwise undesireable?

Do you think that people are holding on to what they have out there or that there is just a shortage and the only thing on the market right now is undesirable stuff?