Bad neighbors worth investing?

[Peter Bui]

Hey guys ! Quick question: can having a trashy(hoarder) or bad neighbor make your house appraised for a lower price ? Agent just contacted me a house in that can sell for 1.1 million (according to comps) but seller has to sell because of a bad neighbor. Seller wants to sell for around 700K. Also HOA fee of 110 Hypothetically if I can cash flow $700 a month, is this property worth to pursue with a 5% ROI in Orange County? Thanks