Investing in Low Income (Potential for High Growth) Area

[Benjamin Sykes]

So I am newer to the Real Estate investing side, but work as a Realtor®. My question is directed toward seasoned investors, or people who might have some experience investing in what is right now is a low income and depressed area but is essentially being squeezed in between two large and growing, active areas. My guess is that in 3-5 years this will actually be a somewhat desirable area. 

A deal that I analyzed last night: 

Purchase Price: $38,000 (Duplex)  2 - 2/1's

Rehab: $22,000 

ARV: Only $70,000

Rent Potential: $699 (Each) ($1398)

The problem I have is that my guess is vacancy is going to be a huge factor maybe 15+%, but with the cash flow potential and low investment point, is this a good investment? Especially with the potential that the area has? I don't mind playing a long game. Just curious if anyone has any experience with this kind of investing and how there experience was? 

Blessings,