Good numbers, great house, bad neighborhood

[Darren Mesibov]

I'm an out of town investor under contract on a house for $110k.  The house is in good shape and is occupied by a tenant who pays just over $1,000/mo.  The block it's on is ok.  Maybe it's a C or C-. I drove to see it last night. The problem is that It's off Patton, south of Drake and is flanked on two sides by the military base so there's only one way in and out, which is through a terrible looking neighborhood. It's not the worst I've seen, but I certainly wouldn't walk around there at night. This block is a small C island on a dead end street in a sea of D+ housing. I haven't done well in the past with great spreadsheet numbers in bad neighborhoods. My property manager thinks this is ok, but I'm concerned about long term value, higher turnover costs and lower quality tenants as compared to a nicer neighborhood. I don't need a beautiful spreadsheet with numbers that I can't hit. My partner, who is very smart but less experienced than I am is not concerned.  Any thoughts would be appreciated.