How many bullets does it take to make a war zone?

[Richard Ryer]

I have a deal that seems too good to pass up on the surface, but, being a very green newbie, I am a little trigger shy. I'd appreciate any feedback the group has.

The deal itself looks like a winner based on the numbers:

Duplex with both units 2 br/1 bath
Asking price: $13k (REO, with city "purchase assistance" available for investors. I'm not sure what this entails. I'm investigating)
Reparis: Unknown for now (I'm taking a look this weekend. Assume conservatively at $10k based on picture)
ARV: $50k
Rent: $525/unit according to rentometer. Let's assume $400

The breakdown:
Total rent: $800
Expenses: $400
NOI: $400
Payment (5%, 30 years, $23k): $125
Interest rate is low because I have $40k available at that rate from the bank of Mom and Dad.
Cash Flow: $275 (or $137/unit)

So far so good... Now for the catch.

The duplex is in a pretty sketchy area. I actually worked about 3 blocks away for 2 years. I have seen drug deals, one day after work, the street was blocked off for a homicide investigation, and all the stats say this is a high crime area. If I went through with this deal, I would definitely hire a property manager to handle the every day drama.

Is there any point where the numbers are too good to pass up, or would you not want to deal with the headaches this area is likely to bring at any return? Obviously screening tenants is going to be EXTREMELY important in this situation and I will need to closely manage the property manager in that aspect. Any other thoughts or concerns I am missing? Thanks in advance for the feedback!