My philosophy when flipping houses has always been the classic "find the worst house in the best neighborhood." In other words, my goal has been to search A+ neighborhoods or great school districts and find distressed homes and bring them up to top of market value for the neighborhood. However, in this market, that strategy is getting harder and harder to accomplish. 

In my area, there are virtually no deals in these neighborhoods right now. However, I'm finding tons of deals in the "C" neighborhoods, on the "bad side" of town. Homes with bars on the windows. It's hard to imagine selling newly renovated homes in these neighborhoods, but right now, it's looking like all I can buy. I know there are flippers who flip in "C" neighborhoods all the time though. 

Can anyone help me wrap my head around the exit strategy in a less-than-desirable neighborhood? 

(There is new construction going on in some of these neighborhoods, but that's largely due to the City's new incentives for builders to build in these neighborhoods. Mostly, they still consist of slumlord shotgun houses with bars on the windows that haven't been painted in decades.)