Location vs cash flow

[Steve Wilmers]

Hey all, I'm curious to see what everybody thinks about the location of a property vs the cash flow it produces. A property I'm currently looking at could be considered the nicest house on the block, especially with the interior finishes. The cash flow is there, considerably higher than higher quality neighborhoods nearby. However, it's in an investor heavy area where many of the cheap houses are being gutted and turned into higher end finish rentals. The number of low income properties still substantially outweighs the refinished properties in the area. What risks are there in buying in lower income areas where redevelopment is slow, but still apparent? Thanks, Steve