Is DC-metro a good area for Buy-And-Hold strategy?

[Weis Sherdel]

Hello BP community - I am a complete newbie and trying to embark on my first project. The education I have gained so far is pointing me to the direction of Buy-And-Hold strategy, but I have heard that DC area is not very good for this strategy as most, if not all, of the rental income goes to mortgage payment.  Contrast this to the 2% rule (which says that your rental income should be 2% of your home purchase price) or the 50% rule (which says that after dedicating half of your rental income to non-mortgage expenses and then paying your mortgage, you should be left with $100-$200 positive cash flow).  

For those investors living in DC (VA/MD/DC), would you agree that our area is not great for rental strategies as prices are so high? If so, how do you determine what geographical areas in the country to invest?