Buying investment for cash flow with low chance of appreciation

[Ron Todd]

My go-to turnkey company sent me an interesting offer last night. A 55k house cash flowing just over $200/month in a rougher area of town. The realtor doesn't expect there to be much appreciation as all the revitalization is going on in a different part of town. I can't force much equity into the propt since it's turn key and most things have already been done. Would you buy based off the high cap rate and solid cash flow knowing you won't gain much appreciation?

[Mike Dymski]

Rule #1 - Don't buy $50k homes in bad locations with no value add and 3rd party management.