However,  if I go a little further North about 45-50 minutes drive into Orange County, NY, there are a few towns and cities, some somewhat depressed and school districts with bad reputations where I certainly would not move my family to, that have much lower property values, much lower taxes and the numbers work.  

IE they already know the Zip codes to stay out of the school districts etc etc. and they will buy the homes on their own retain their own GC or do it themselves. 

In Texas, though, we have picked brick houses (to avoid messing about with painting or repairing siding), 3/2 houses in nice school districts and... in the oil patch, and near a military base. 

Other factors that affect value are neighboring houses, busy streets, proximity to commercial properties, school districts, ease of access to freeways and other amenities a buyer will be looking for.  

I think the key is to focus on areas with good school districts, rehab entry level houses. 

Unless you are looking for D class properties you'll want to stay away from the "international district" otherwise known as the war zone.

The Canyon Creek area is basically cut in half by the school districts.

Ill add another factor to consider and that is this:Which properties will appreciate faster (thinking about school districts, demographics, jobs in each area etc) and which properties will you be able to perhaps improve some and increase the rents?

Essentially buy new construction in 6 or greater ranked school districts in solid areas (path to progress) focusing on renters moving out of apts.  

The school district (12) is rated as one of the best in the country - house prices are very stable; even during the recession.