Given this is one of the rougher neighborhoods, I'm a bit concerned that the next set of renters might not be as good as this set of renters.

Hi there @Brandon Brown - We've done this several times....we recently did a 400 amp service for a 4-unit building in Logan Square Neighborhood of Chicago. 

While I’ve recently joined Intero Real Estate in Fremont, I bring a data-driven, analytical approach to real estate, thanks to my engineering and project management background.Over the years, I’ve lived in various parts of the Bay Area and have developed deep knowledge of local neighborhoods, schools, and market trends.

See if the neighborhood has changed at all.

Despite its high purchase price, the neighborhood's strong market demand and low renovation needs made it a promising investment for maximizing profit with minimal turnaround time.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

There are local firms that will do it for you with the cost of about 1/3 the tax savings. 

Magnolia has an incredible restaurant in another part of Waco, they bought a historic hotel that they are currently renovating, they bought an actual castle in the heart of the city that they are currently renovating, they own one of the largest real estate brokerage firms in the city that continues to serve the real estate market, and they themselves own several Magnolia short term rental properties that tourists can rent nightly to have the full Magnolia experience.

Is there a neighborhood you recommend in that price range 200k for a long term rental ?

To thrive in real estate investing, you must maintain a firm grip on your finances.