How much cash flow would justify a bad location and big reno?

[Katie M Reece]

Hello! I am considering 3 properties. They are nightmare properties (everything that can be wrong with them—is). But even with an enormous reno budget and conservative rent estimates, I believe they will cash flow well (which has been hard to find in PHX). My in-laws are begging me not to buy them because of the rough neighborhood (they invest in high end properties, rent them for just enough to cover the mortgages and wait for them to appreciate). That’s great but we want cash flow properties, not (necessarily) appreciation. What type of cash flow would you need to justify 1) bad location and 2) big reno?