Plus, there's a niche to be filled by offering the smaller homes - boyfriend/girlfriend, recently engaged, temporary out of town workers, and just plain single people.The 2/1s tend to have more turn over than a 3/2, but it's a niche that many investors overlook, and still a good segment of the housing market.If the numbers work on a 2/1, I would continue your due diligence and proceed if everything makes sense.

I am planing to do short term deals to start such as wholesaling, rehabs and fix and flips, but if I venture into land-lording, I will probably try to target this segment of the market  This is just part of my business plan, but at some point I can foresee some value to adding it to my arsenal.   

We always overbuild this segment and vacancies go up, but 5 years, you might be ok.

That segment hasn't been a large part of my business, which is probably why my perspective is a little different.With my personal investments, I'm just waiting for sellers to start accepting my lower offers too.

At this stage you would need your own property insurance (different than Mortgagee property insurance) and you would likely want to get title insurance to protect title, that would be an owner policy now.Now you are the property owner with a tenant.In this trade you want to deal with each party on their own in their own segment of time.  

Negotiation is used in every segment of your life, not just business.These are audio CDs.

Here in So Cal, if you segment the market by price; the higher end has seen prices holding up well while at the low end there are almost no sales taking place.

.- You are on both ends of the investing world and the sweet spot is right in the middle.Think of the Monopoly Board - the best investments are the Orange and Red properties around Free Parking --- Go to Jail cards and the Go to Jail spot jump players over the high rent properties and the low rent properties in a way that mimics the supply and demand principles of the free market --The Orange and Red properties represent the highest rental demand segment of middle class America -- In my opinion that is where you will most successfully invest and if I were in your shoes, that is what I would do.Good luck and Happy investing -jeff

@Andrew Reyes, it depends on what segment of the market you are looking for.

Generally speaking, a small segment of the population is ever going to sell to you anyways.