Great cash flowing property in higher crime areas

[Eric Piccione]

We found a 4 plex that has a cap rate of 7.5%, cash flows 590/m and provides a COC ROI of 26%. The only issue is it's in an area with higher crime than the rest of the city. Accounting for vacancies and everything, the NOI is right around $24K so this seems like a great deal. It's also been on the market for a while. I would love to know everyone's thoughts because there are a few schools nearby that have a 7 or even an 8/10. Any and all opinions are welcome!

[John Prucha]

I've definitely found myself drawn to these properties and managed to pull my eyes away because I'm not sure war zone investing is the way to go. One possibility is to talk to a few property managers and get their opinion about the property, location and possible tenants.