In my opinion, this area is a melting pot, there is low income, high income, and short term rentals all mixed together. 10-15 years ago, I wouldn't have gone to this area alone to work, but it has gotten a lot better and I have never felt unsafe while working in this area alone. 

To begin, I am considering renting my primary home because the loan is at a low interest rate, and the cash flow, based on comparable rentals in the area, is promising. 

Best way to mitigate a lot of the downsides of low income neighborhoods is to go with Section 8 tenants instead of cash paying tenants.Rent is higher.

Cannot be a low property value (less than $150k) 

Henderson City offered a low 3.5% interest loan for redevelopment.

To answer your question, 10% seems to be on the low end of what I typically see.  

I gave them both a free month lease back for furniture or a low price for the homes.

Many investors want to invest in real estate, but find it too expensive where they live, so they turn to our market in Memphis, TN (Workforce City), attracted by the low barrier to entry and cash flow potential.

Do you have credit cards with places like Lowes and Home Depot that you can use to buy materials now and not need to pay off for maybe 90 days?

@Ryan G.Those numbers sound reasonable. 40k rehab may be a little low for most projects.