Do rentals in "bad neighborhoods" cash flow better?

[Tim Lyons]

In upstate NY $200,000 buys a clean turn-key two family house in a desirable area. I'm not sure what the units would rent for but likely at least $1,000/month each. That means unless a substantial amount is put down (way more than 25%), the property probably won't even cash flow by the time the mortgage and upkeep is considered.

On the other hand, a $25,000 down payment on a $100K two family house in the "hood" will likely still have units that rent for at least $700/month. That leaves considerable cash flow because of the small mortgage.

Is it worth dealing with the downsides of buying and renting in the less desirable urban areas? 
 

[Paul Moore]

@Tim Lyons in my 21 years of real estate investing I noticed that investors gravitate towards nicer and nicer properties in better locations as they get more experience. There must be a reason for this and I think the respondents above made that pretty clear. Good luck!