I also thought it was an undesirable area, but after speaking with a prominent investor who owns there, he said that the property has been one of his best cash flowing, least troubled assets in his portfolio.

It may mean the repairs are significant, or it is in an undesirable area. 

It appears the Cap rate is too low and the lagoon situation is very undesirable. 

Sooooooo, that means you are getting an undesirable deal, that has a lack of potential to seriously increase the NOI or in a war zone etc...Buyer beware!!

However, I have read some 'experts' that say unless you practice with your semi on a regular basis you are better off with the simplicity of a wheel gun.AdrianG: after you spend some time reading the many useful posts all over this site, you will see that some of us rent to low-income tenants where we are actively involved in cash rent collections, delivering eviction notices, chasing drug dealers and other undesirables off property, doing repairs at odd hours, etc.

If those projects aren't successful OR those changes turn out to be undesirable, you won't see appreciation.

Unfortunately those properties attract many "undesirables" too.

It won't here, but you could check your area.A couple of rungs up from what I call "the bottom" might be the best bet.Affordable, in town, so big tenant pool, but not fearing for your life or tenants who are too undesirable.

Appreciation was enough incentive to move to an undesirable neighborhood for newer home buyers in California.

The real estate market here never ceases to amaze me, when I bought this place it was in a "undesirable" part of Berkeley which has seen numerous improvements over the last 5 years and I thought I was paying to much 5 years ago.