We know we want to get inside the District of Columbia but it's crazy expensive in nearly every neighborhood.

Thanks to being zoned in an A school district.  

Alternatively, drop by the mission district sometime and let's do lunch!

Using the same "2%" rule that people love so much, I have determined in the great neighborhood, and school district that I live in, that I have a threshold of about 1.25% at the bare minimum. 1% is just too thin, barely any cash flow, and wiggle room if the rental market drops in the future.

If it's similar to this purchase, then from the updates my realtor sends me, there are plenty of homes in the $85-100K range in the top rated Cypress-Fairbanks school district that rent for $1150-1200 minimum with annual maintenance fees of about $250-500, depending on the community.

Now on the other hand, I have a house in an upper class suburb that has the best school district in Central Illinois.

I just bought a bunch of properties in an A- area (Museum district of Houston).  

It was not cheap, but it is in great condition, good school district, perfect back yard - I could have bought another one for 40k less down the street that needed some work, on a corner lot and no back yard - can't fix that. 

Rentals in good school districts can cashflow nicely.

Its been in high demand because of its location across from a University and in a great school district.