Dallas area home sales are down slightly from 2013, but that is due to historically low inventory. 

And you bring the inventory to them.

Yes the REO inventory is very thin and competition for those is high, as you've seen.I'd recommend getting some practice talking to owners/sellers directly; you'll have to do it sooner or later anyway, and the sooner the better IMO.For example, try "driving for dollars" which means driving (or biking or walking) around a neighborhood near you and calling on For Rent signs to ask if the owner might want to sell instead, or talking to people in the neighborhood about any vacant/derelict houses you see.You might also attend a local real estate investor group such as RIREIG in RI or Black Diamond in Worcestor/Waltham.

We'd like to continue buying real estate, but the way prices have increased and the lack of inventory, margins are being squeezed on newer acquisitions.

Mostly 2$ items but it is packed floor to ceiling, I would estimate inventory 25 to 35thousand.

Portland, ME is a stable market, lots of competition for deals, small inventory, and the spring and summer has produced great comps. 

We have been trying to buy a duplex, but have so far been unsuccessful (not a lot of inventory that meets our criteria). 

There isn't a lot of quality inventory for your price range and I have found that getting over the 1% rule is doable, but anything more than that is difficult.   

I THINK IT IS A GREAT FINANCIAL INVESTMENT IN YOUR FUTURE, but you may have to make some sacrifices on where/what you want to live (in) due to thinner inventory, different shared walls, etc...

But it can be pretty nerve-racking having to re-lease most of your inventory every year, and at the same time no less.