Vacant Multifamily Properties- Good, bad, terrible

[Canesha Edwards]

Good morning everyone, 

I've been thinking about what I want my niche to be as an investor.  I've settled on small multifamily properties 2-20 units.  There are quit a few of these properties around the Atlanta area.  Most of these properties are considered C-D class properties for either being vacant or needing a lot of work. However, the properties are in  great proximity to downtown Atlanta.  

I know the risk associated with these properties are high, and it would take a lot work to make the property profitable.  Does it make sense to just tear down and start over? With all the development going on in Atlanta, there are still certain pockets of the city the have numerous vacant homes. I would be interested to know if there are any local investors taking on these types of projects? If so, how are you underwriting these deals?  What issues have you faced with these type of properties? What are your risk mitigation strategies?  

Thank you for any response, I greatly appreciate it.