Is this a good deal? Good cashflow but bad neiborhood?

[Kevin Jung]

I'm looking at a duplex with crazy cash flow but it's in a really bad neighborhood. Bunch of thieves, dogs, and drug attics running around. Pretty far from any restaurants, markets, and such. But it has 2 tenants in place already, who are paying $900 per unit. Have not had an inspection yet, but expecting to see few problems like needing a new a/c and it's also in a flood zone (with stilt height in place). I remember not to mix personal feelings towards buying an investment property, but I just cannot help myself.

So should I put an offer on a property with crazy cash flow that's in a bad neighborhood and possible problems with the property? I would use property manager since I live in a different state.

Listed $139,500. 20% Downpayment ($27,900). 

PITM (Mortgage, Insurance, flood insurance, taxes)= $838

Rent = $1800 (900 per unit) {each tenant has contract until May 2022)

[Jennifer Donley]

This is a hard no for me.  Bad neighborhoods are tough  - even if you have the best tenants on the planet, you will deal with things outside your control - violence, break ins, etc. that will cost you money and kill your paper cash flow.

Also in your calculation, you haven't figured in vacancy, maintenance, reserves, property management and owner paid items such as utilities, lawn care, trash.  Add those in and the cash flow on this isn't all that spectacular.  It'd be fine in a decent neighborhood but not nearly enough in a bad one.