What Neighborhood is a good neighborhood?

[Christian Bateman]

Hey guys,

I've been analyzing deals with a buy and hold mentality in the Tacoma, WA area for a while now. Like anywhere in the US, the best "deals" are in the worst parts of town. The area has a full spectrum of neighborhoods, from super posh urban with great schools, to po dunk ghetto. I'm having a really hard time comparing these properties because it feels like apples and oranges.

For you, what kind of neighborhoods have worked best? How ghetto is too ghetto (tenant turnover > 1/yr)? How nice is too nice (people don't rent if they live in these areas, if that even exists)? How much of a premium should you pay for a nicer neighborhood with less tenant turnover and higher rent? Is it worth the risk to pay less for a property in a bad part of town? 

I'm leaning towards paying a premium for nicer neighborhoods, but the delta between homes in nice areas compared to < decent areas is HUGE, like $60-70k, and I'm starting with very little capital ($30-40 down+reno).

Specific geographics aside (I'm interested in Tacoma, but would love to hear from anywhere), whats been your experience? Any suggestions?