I lived in class C neighborhoods growing up.

@Steve MaginnisIt was more a rhetorical question.I still remember what I was taught in one of my first sales classes: "you sell on price, when you have nothing else of value to sell".

I originally bought this as a C class property.

I’m essentially self taught, and will not pay for classes.

Most of our buy and hold investors prefer B and C class neighborhoods.

If you do find something approaching the 1% rule, it very likely could be a D-class neighborhood.

Anything B+ class or higher rarely cash-flowed and fixers were better for flips. 

I have some money saved up, but I am not sure if I should use my cash to buy a house and be in a lower class neighborhood, or if I should look to finance a house and be in a higher priced market?

I personally think Northeast, East and Southeast Austin have some big growth ahead over the next decade as they have only a few new construction neighborhoods today, but not much in terms of A or B class commercial yet (HEB, Home Depot, Walmart, restaurants, etc).

Yes, there will be a category difference between properties there... the $100,000 properties being closer to C class properties, but I predict you will find that you will make twice the money going with the cheaper properties, if not more.