Would you buy in a "sketchy" area with positive cashflow?

[Mia Trasolini]

Any and all opinions are much appreciated!! 

So here's the situation...I'm an aspiring investor looking to make my first deal, focusing on multi unit properties (mostly duplexes). ... I live in San Diego. Prices and competition are through the roof so breaking into this area as a new investor is challenging. 

The only properties I've found so far that cashflow in my price range are in areas that are "sketchy" aka high crime, gang presence, etc. However, they are improving (crime is declining and rents are increasing). And for those not from San Diego, these areas southeast of the city are a 10min drive to the heart of downtown. 

The same was said about similar neighborhoods like North Park and Normal Heights 5 years ago. Now, the areas are booming and 400k properties back then are now selling for upwards of 600k. 

I'm tempted to make the leap of faith knowing the financials work and I would be very strict with tenant screening. To reiterate, I'm NOT banking on appreciation (although it would be nice). This is real rental cash flow. 

What do you think??

[Ben Biggs]

1,000% I would. I own and lived in a duplex in one of the “sketchiest” areas in San Diego, Logan Heights, with a wife and a newborn baby so I could get my foot in the door of the market. That was 2 1/2 years ago and now I have $120k + equity, and I break even WITH a property manager managing both my units. I could probably squeeze a little more rent out too. I’ve sold homes in the nicest and worst areas of San a diego and the simple truth is that the “Sketchy” neighborhoods are simply working class people and as long as you are nice to everyone and are not trying to sell drugs they will love you and welcome Nice people. This market is only going up at least for the next 5 years or so, I’m looking at acquiring my next property within the next 12 months. I’m willing to deploy capital here and this is all I do 24/7.