Is investing in Frayser (Memphis) TN a good or bad strategy?

[Cory Jones]

Hi everyone,

I was wondering what local Memphis investors think about investing in Frayser (38127 zip).  I have experience dealing with rentals in Frayser and know what its like (I have 3 homes there - considering buying a 4th very soon).  I'm wondering, however, if i should stop investing in Frayser and focus on finding deals in better areas like East Memphis / Colonial Acres.  Here are the pros/cons as I see it:

Frayser Pros:  Excellent cash flow (when rented to a good tenant), cheap homes (roughly $40k or less), rougher area.. but not so dangerous that I won't go to the house to do work (during the day of course).

Frayser Cons:  Home values will probably never appreciate much, dealing with low-income tenants who often only make partial payments (always seems like I'm chasing them down), risk of break-ins when vacant, I've NEVER had a tenant give notice to leave.. they've always been evicted due to lack of payment, flaky handymen/repair people (maybe this is common everywhere).

So is it smart to be investing this way.. chasing the cash flow?  Or, is it wiser to focus on better neighborhoods to get better tenants and potential home value appreciation.  Seems like i would need to spend double (80K to 100k) to get $900/mo in rent in a good area (e.g. Colonial Acres) as opposed to 40K in Frayser to get $675/mo.

Any advice you all might have would be greatly appreciated.

Thanks!

Cory