Mom and Pop shops are not that great at accounting and the numbers tend to look like they can't afford to live so take that in to account plus the operations they are doing. 

Seems like a cashflow only market, so picking a neighborhood that can get decent tenants is a must. 

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, many blemishes, but should have no evictions in last 2 years.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

If you use rento-meter pull a pro report and look at the map of where the comps are and be cognisant of which neighborhood your subject property is in.

These properties often have systems with about ten years of life left and are situated in neighborhoods with appreciating property values and rental income.The cash flow from a property largely depends on your down payment.

I’m also in the process of reaching out to people in my city/neighborhood who are experienced REIs, RE agents, and GCs to get their insight and pick their brains, start to conceptualize potential partners, etc.

My guess is these are properties in lower tier neighborhoods.

I think in a bad neighborhood as well.  

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.