Altgough, we do have a bigger front and back yard.We bought in a neighborhood that is slowly being bought and flipped.

In this neighborhood, the house will rent for $3000 per month, the other 2 two bedroom duplex rents for $1100 and $1500, below market rate.

William, You need to do the full math, as @Peter M. mentioned and did for you, the percent rules are just for quick analysis like he said. the percentage will analysis people usually use to help tell them if they want to run the numbers further on the property because it fits a certain % criteria. that's OK but does not fit every situation, what if you know the area is an up and coming hot spot and even if the % number is off - because the incoming rent is below market and you know that they will be going up - then the percentage rule will tell you to walk away and you would miss out on a property that a full analysis from the beginning would tell you to jump on that property because you would know that the rents were below market and that they are going up. forget the percent rules, learn the area you want to invest in, you will learn what the area does, the rent it gets and how much would be a good amount to purchase for based on the amount of rent you can collect for that property.

To get my foot in the door I am looking at duplexes in B neighborhoods and/or properties that need some work.

Then play with the numbers (mainly the purchase price) to see what would work for you.In this particular C class neighborhood I would put an offer between 70-80% of asking or less depending on condition.Good luck

Statistically the worst home in a neighborhood underperforms. 

I’m looking a decent duplex right now about 10 miles out of bardstown in a good neighborhood.

You're providing them real value, and they'll actually want to work with you and teach you what they know.For example, hypothetical successful investor has plenty of cash but is just not finding enough deals that fit their criteria.

@Dymond BurnettUsually the saying is that it’s better to buy the worst house in a good neighborhood than the best house in a bad neighborhood.

I plan on cold calling around neighborhoods I want to live in to find a great deal.