We looked at a very nice 4br 2 1/2 bath in my neighborhood listed at 420k.

Research the neighborhoods you're interested in to identify areas with growth potential, strong rental demand, and favorable appreciation trends.Financial ImpactCash Flow Analysis:Perform a cash flow analysis for both scenarios.

The contractor has filed a lien, people hate me, the neighborhood hates me, it's all boarded up and looks sad.  

He ended up keeping it as a rental, but what tipped the scales for him was the rent appreciation potential in his specific neighborhood and the tax benefits of holding onto a property with a great interest rate.

Those who show, I interviews and lease based on answers. my property is in a D neighborhood and most tenants aren’t the best and most won’t submit credit/background checks. 

Right now I am concentrating on a single style (LTR small multi in CT) and a catastrophic event here would frankly put me out of business. 

You can't find land in Piney Point cheaper than houses in 77063, the proximity doesn't mean it gets an associated up charge.The Heights(77008) post recession has been one of the best neighborhoods in Murica, let alone Houston.FWIW, I'm deep there and 77007(near Memorial Park). 

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.

Criteria can include location, population growth, job diversity, amenities, desirability of bedrooms and bathrooms, size, and comparable rents in the neighborhood.

@Saurabh Kukreja we don't recommend investing via zip codes - too broad of an area.We've mapped out all of Metro Detroit and categorized Cities & Neighborhoods by Class A, B, C, & D.We take assisting investors very seriously, just read below:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?