Is it just a matter of finding a desirable area and being patient?

The reason its cheap is becuase its in lease desired location, but I could afford and the cash flow potantially is great. 

I desire to learn, to listen, to grow and in time contribute my time to others like myself who may need a hand up.Thank you for your advice and for reading my letter.God BlessSincerelyDaniel

Here are the details on the house:The Good-Located in Hunterdon County NJ in a desirable town/school district-2 bed/1 bath-Attached 1 car garage-1/4 acre lot-fenced back yard-Hardwood floors-Central air, newer oil furnace/wood furnace-30 year roof put on 7 years ago-450 SF of finished space in basement, carpeted with built-ins-Full perimeter foundation drains and two sump pumps (basement has never seen a drop of water)-New gas stove, dishwasher, and laundry machinesThe Bad-Mortgage balance is about $222K @ 6.125% - House was appraised last month at $220K-Current PITI is $2345/month-$1495 Principle and interest-$615 Property tax (Taxes are very high here)-$60 Insurance-$175 Private Mortgage Insurance-Normal rent for my area on a 2 bed/1 bath is only about $1000 a monthDo I have options here?

Desirable neighborhood. 

Putting in offer on a desirable property.  

Hit the one that is open and make it as desirable as possible and not worry bout the other side for a while.

I also long-term have a desire to participate in the affordable housing marketplace.  

Right now I desire to grow the portfolio but am kind of sitting asset rich and cash poor.

VERY desirable area of Indianapolis.Just a few numbers as to not bore anyone!