Bad Area, Numbers Work - So What? Help Me Understand!

[Ricky Nigro]

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Hi All, me again!  I need help understanding why this deal would be bad.  A similar deal discussed raised some valid points but I am not understanding the inherent issue of a "bad neighborhood".

These deals are easy to find in the Cleveland OH neighborhood.  I assume, a "rougher" area might have greater turnover (accounted for at 10%), probably more repairs during turnover (accounted for at 10%), need good local property management (10%).  

The property exceeds the 2% rule with worst case assumptions (2.38%)

The property meets the dollars per door, $175

Cash on cash hits 22%

Fully refurbished (actually quite nice) and clear inspection report including large items.

I am not looking for appreciation, simply cash flow.  Demand seems high in the area so exiting shouldn't be difficult.  I am not living there so a "rough" neighborhood has no impact on me.

What am I missing?  Seems like great cash flow all things considered.

Also, this would be my very first real estate investment.  Low cost of entry, I figure I will learn a great deal.

Help BP!