We still have affordable homes [under $70k that rent for $800+] and lots of jobs and even more renters.With that said, I always suggest looking within an hour or two of your home.  

The Home Affordable Modification Program (HAMP) is 6 years old now, and it’s been extended again.

That also includes non-homestead property taxes, and 10% maintenance.Then I can only afford to put down 5% towards the purchase of the new house.

I currently wholesale in Charlotte, North Carolina an came across a great multifamily deal that could be bought for around 40 percent of its ARV.While trying to get it under contract the property required a deposit that I couldn't afford.

Lincoln Square is really great, if you can afford a 2-3 unit there, you will probably do really well.

FHA the nicest multi-unit house that you can afford, or buy the biggest and most Boss/Pimpin/Baller single-family home that you can afford, and charge your roommates (or AirBNB guests) enough so that you don't have to come out of pocket for your PITI payments.  

Finally got to a point where I could afford 30% DP's then all my leg work on getting creative started to pay off.  

Again, appreciation is limited by the affordability...

@Dan Mackin, I don't think he would, but if he did,  I don't know if I could afford it at that rate. 

Of course, that's the last thing you want to do and if they give you a hard time about deposit, you could hire an attorney to review the P&S and see if there is an escape route you could entertain.