Since you know Ohio, you have a leg up.

You have a leg up on most in that you understand regiment, organization, responsibility, and dependability. 

I personally believe rates will slowly come down to long-term historic averages in the mid-upper 4% range, but I don't think cap rates will compress much under 5, and that is going to be for the best product in the best locations.  

Owasso is another area to consider, though prices there may be on the upper end of your budget, but the rental demand is strong due to local amenities and a community-focused environment.For a buy-and-hold strategy, these areas tend to offer good rental demand, relatively low vacancy rates, and potential appreciation over time.

Purchase price: $400,000 Cash invested: $200,000 Bought this fixer upper 2 family house with 2 bed 2 bath and converted it to a 4 bedroom 2.5 bathroom with finished basement.

Although I have gotten on quite a few NNN brokerage mailing lists, I am nervous about the 45 day timeframe and lining up a great up leg(or two) that actually completes the 1031 and ends up being a stable safe move.Enter DST's and diversification of location and asset type, combined with their 5-10 year cycle timing, that seems to line up with the usual ebb and flow of the economy(if timed right).

You still have to pay your crew, but you don't pay yourself and you should have subs who work for wholesale prices for you so you have a leg up.

If you want something more affordable but still solid areas I would consider - Upper NE Philly, Roxborough/manayunk, and West and part of East mount airy. 

The ripple effect of AB 968 could be that fewer distressed properties hit the market at affordable prices, ultimately impacting those looking for a fixer-upper to build their equity.2.

But I'm hopeful that it's one leg of the stool for me that kicks in some business, and while it's not great math, I'm glad that I have already had the cost covered by transactions from leads.