How bad of an area is too bad to invest in?

[James Tucker]

How bad of a neighbourhood is too bad to invest in? If the numbers work how bad can an area be before you should stay away from it?

[Russell Brazil]

There is no area too bad, or too good. There is only the risk of the underlying asset measured against your risk tolerance. Those with a high risk tolerance, and knowledge of how to mitigate their risk may do fine in a class D/F area. But with the higher risk asset comes a greater chance at failing in that type of investment. 

I like class A/B. Ive done the D/F stuff and lost money. Dealing with the crap that comes along with lower class rentals can be disheartening.