I know a similar situation has happened in NYC too with people getting priced out of areas that at one time would of been considered undesirable or cheap. 

If we are talking about generalities, the West side is considered desirable whereas the east is considered undesirable.

2% to 8% is possible but is usually going to be in undesirable neighborhood.

The possibility of getting stuck with an undesirable long-term relationship is exactly why you have to vet like crazy before you cut a check. 

I don't follow that area but there are a few on here that do and it sounds like there are some undesirable areas so you may want to watch for that.

The entire area should be leveled in order to drive out the undesireables and the problems they bring with them.

We take this very seriously as this defrays having undesirable occupants.

In the few days I followed, I saw 10 to 15 properties sold to 3rd party bidders (daily), but the majority of those were either in undesirable areas or sold at a price that left little to no margin for an investor.  

In effect, you have shielded your rental portfolio from the undesirable tax effects of your flipping business.Separating the two practices with entities also has important asset protection benefits – if the corporation gets sued, only properties within that corporation are subject to a judgment, if you conduct yourself properly.Installment Sales ProhibitedWhile investors can do installment sales, and only pay taxes on the money as they receive it, a dealer has to pay taxes up front on any income due from an installment sale.

Either it has been very poorly managed, the property is undesirable, or there is something else going on.