Buy & hold: How much does location/ neighborhood matter?

[Joe Bielevicz]

I have several rental properties and am looking to expand. I don't see much discussion about where to buy in terms of neighborhood. My CAP rates are very good, however my properties are in an area that is not considered the best place to live, and while there are some signs of a potential revival, things could go either way. My question is, does that matter? Should I only be looking in neighborhoods on the rise, where the rent and property value will definitely go up? Or should I just focus on the individual deal & the near-future cash flow potential?