How to determine if a certain neighborhood is worth investing in?

[Blaine Alger]

When I was home for spring break, I started to do some research on a house down the street from me that has been vacant for a couple years. There is some work to be done, but it looks like it would be a perfect little rental house with a few cosmetic repairs.

The only thing I am skeptical of is the neighborhood. It is not in a crime zone or anything like that, but it is just an older neighborhood with mostly owner occupied homes. I just don't know what the demand would be for a rent house in this particular area. 

What are some tools you use/things you look for in a neighborhood to determine if it would be a good area to invest in?

[Joe Villeneuve]

If you're planning on flipping it:  Sales comps of similar houses within a short distance minus all costs = profit

If you're planning on holding it:  Rental comps (rents) - all expenses including mortgage = cash flow