Short term rental in an area going through gentrification

[Rea Cooper]

Question: Is a short term rental in an area historically riddle with crime but going through a gentrification/revitalization process a good idea?

Context: Hey all! I am looking to get started in real estate via house hacking and mainly attracting short term to mid term renters (to achieve higher profits). I have found a nice property however, it is in an area that has been historically riddle with crime. After doing some research, it seems the major crimes are located either across the highway/railroad tracks or 3-5miles down the block. The street and surrounding area (~2mi) has not had any major crimes (only one house break-in and 2 theft/vandalism) within the past 6months. While at first glance this would seem unappealing, after going to the area, it looks like there is some serious gentrification/revitalization going on (houses and grocery stores are being built along the entire street). There is a community center and very well kept park (basketball courts and land is in great condition) within walking distance. The area is very close to downtown, the hospital, and also all the tech hubs. I plan to add extra security to the house to prepare for the worse. So my question is, is it a good idea to buy in this area now thinking in terms of the potential future market growth/development or should I pay more for an area that is already developed and a little safer historically? My budget is $400k and it seems this house allows me to invest the least in house repairs in the long term compared to other houses in the market currently.