Would you invest in MFRs located in a "bad" neighborhood?

[Tony Wu]

Hello BP friends,

I've been looking for cash flowing MFRs in Phoenix and Las Vegas area and noticed that the properties with good cap rate are located in less desirable areas, i.e., poor schools, high crime rates, etc.  While cap rate may be enticing, would you recommend investing in these areas?  I'm investing outside of my home state of California.  Thank you in advance for reading!

[Jonathan Gobbo]

I actually did and will never again. For one, I have to manage my two quads myself because I can't get a property manager to stick because they don't feel safe in the area, and two, no amount of cash flow is worth dealing with the type of tenants you get. And I'm in Tulsa, OK, it's not like I'm in a huge urban center with a whole lot of problems.

Of course if you would like to by two great cash flowing properties in Tulsa, you just let me know! I can make you a great deal on them! Ha ha