It depends on a lot of factors that you didn't include.
Why the rush to buy now, and not in 5-10 years? Is the area being aggressively developed?
How much rent would you expect to get?
How old are these little old houses, and how much money would you need to sink in them to have it viable for rent?
Do you know what your interest rate will look like (I'll assume with a 20% down payment)? Keep in mind that mortgage rates for investment properties aren't as good as for primary residences.
1) There's no real rush to buy now. My reasons to think about it are that interest rates are low and the area in question took barely a dip in the latest recession and it is being aggressively developed. The area is limited (land is edged by mountains, water rights are limited) and new construction in this town are mostly 800K + homes. The reason we like it is access to mountains, trails, views, parks, and it maintains a small town feel while having great access to the surrounding cities. I will be (hopefully) done with grad school in 5 years and I hope to be working in the area as well (healthcare). It is an equal commute for my DH to his work (assuming he's still with the same employer). However, this area will be a farther commute to grocery/retail stores than our current area. But with grocery trip planning, this can be overcome.
2)The houses are 1930's to 1980's. Not a lot available- If this is something we decide to do, I'm going to have to watch for the right property. The example house I found was built in 1972 but had been completely renovated including appliances, flooring, cabinets, HVAC, etc. The house in question looks ready for a renter now, although I haven't looked at it in person. I have the time to manage a rental now, but won't when I am in my graduate program. So at that point management would be an expense.
I am unsure on rental potential, as I haven't been a landlord before. I have a good friend who does this, so I need to ask her. I think I would be lucky to get the minimum 1% of purchase price in rent.
Thanks for all the food for thought. It is a common practice in this area to buy a lot for a dream house years down the road. I was just wondering if this would be the smarter, more mustachian way to get to the same place.