$20-30k cash for c-class properties. Worth the headache?

[Tiago Martins]

I am thinking about buying single family homes in a C class area. I have found $20-30k homes, that I would pay cash for. These areas generally rent $500-800/month. I would be cash flowing 2% or greater. They aren't desirable school districts, but people still live there and raise families there. I know getting rent might be an issue, but I've heard of people offering cash for keys. Also have read books on section 8, where they say people don't want to lose their benefits, so they tend to follow the tenant rules better than non-section 8 tenants. My theory, although naive, is that if a $30k home brings in $600/month (2%), and the tenant decides to not pay rent for 6 months, it drops the 2% to 1%, which is better than a $150k home bringing in $1,200/month. I could take that $150k and buy 5, $30k properties renting at $500-800 a month. That means $2,500-$4,000 a month. That would give me room to risk a tenant that doesn't pay. Is that an idiotic thought process? I need some guidance.