@John Chapman you make some great points about the pitfalls of investing in "junker" properties. I think the key is to do your due diligence on the area to understand if it's growing economically or not from an appreciation standpoint. I would personally stay away from anything below a C level property for cash flow purposes. The headaches of managing the tenants and the potential for non-appreciation are just to much for me. However, as you said if the price is right and the area is improving it may work out long term.
@George Paiva you make a great point about the non-conforming use aspect. You can easily get stuck with a property that is no longer grandfathered from current zoning regulations if it has lost it's continuous use status(sat vacant for an extended period of time). I agree that there are plenty of MFH properties in Connecticut that are completely outdated (electrical, plumbing, etc.) and run down but the landlord still wants top dollar! I would check what the local zoning codes are first to be sure everything is in compliance.
