But frankly, in my opinion, buy and hold REI is not as attractive as it used to be in most markets. 

Or if not, how much would the market have to come down to make it attractive again?

I think part of what is happening in Mississippi is that the rent income relative to cost of houses is so good it is attracting an awful lot of out-of-state investors who have trouble finding deals elsewhere.

For the price range, you should consider either a brand new build (currently offering the most attractive financing terms, with several options even available through USDA loans where the downpayment is 0% without the pesky PMI or MPI with your conventional or FHA counterparts. 

Take lots of pics during the inspection and learn how to create an ad that will attract potential tenants.  

For your new residence, as an owner-occupant you have several attractive options.

If anywhere near $100k cost and 75% LTV, your return would not be attractive because you're putting too much cash in the deal.  

I am thinking to make this home investment attractive it would have to be around $60,000 purchase price with the same $5,000 rehab costs.That would be my purchase price.

The one constant will be that you are hoping for appreciation, but other then that I would be looking for different things in the property based upon my hierarchy of needs/wants.As for a few examples:If you are buying a first home that you will only be in for a short time, I would suggest looking for a neighborhood that would attract renters in the future. 

He told that he used a direct mail advertising service and was able to attract more customers.