Not much difference between D2 and D3, if you are good at D3 you know what to do at D2 with the exception of going for D1 drop downs instead of D2 drop downs.
In General D1 players about 170-200 position ranking are achievable (no real set numbers but thats about an average area to expect) The rankings are similar to overall ratings though, you can't let them be the thing that guides you, plenty of unranked players who are better.
Check around to some top D2 teams to see the talent level, but pretty much the best way to figure it out is to send those first cycle phone calls to the players and see what talent level will talk to you and what won't.
As far as money you still want to stay somewhat local since you are only getting 2K more per scholarship, but you can move a bit further away. You generally won't spend too much more than in D3 if you aren't battling. You'll run into a few more battles in D2 than D3 but people still tend to avoid them. If you stay out of many battles you will find D2 way easier than D3 since it is pretty much the same thing with more money.