Single family neighborhoods rehabbed into rental communities bad?

[Rod Desinord]

I was reading in the local paper about the affect of the investors buying and rehabbing distressed properties and than ultimately renting it out. It claimed that these neighborhoods have became a transient type community with crime rates going up and so forth. I ask if these properties were distraught in the first place..Was it not already going down hill to begin with? But I also know REO's give preferential treatment to actual end users of their properties. Investors tend to be shut out from the bidding for atleast 10-14 days.