Do not put yourself into a position that you may have to sell in a depressed market.Good luck

"D" areas are run down neighborhoods with boarded up windows, abandoned buildings, high crime, and are overall poorly maintained and depressed.

Is the area depressed financially?

Because of the lack of sales ARVs in multi-familes are naturally depressed.

Those that send deals with inflated ARVs, depressed rehab budgets, and high-pressure-self-serving terms (which is 98% of the ones that come across my desk) stay where they started . . . in the trust muck-and-mire.

One thing I like to do is decipher my true ARV, run my analysis, then change my ARV to a 'depressed' selling price, if I still manage a profit I feel much more comfortable making an offer.

That return is 60% per year assuming I do not raise rent or account for principal pay down and appreciation.In 5 yrs of holding: 30k cash flow10k principal pay downAbout 10k to 15k appreciationAbout 50k profitIndexes historically grow at an average of 7-8%Over long term, matter fact 5 years may not be long enough to hold an index as market volatility may experience extended cycles of depression.

Whether its Schizophrenia, drug addiction, depression, it doesn't matter.

As such, while the property prices are depressed and attractive (but the property tax are still high, eating ~30%+ of your annual rental income), so are the rentals - go checkout how many available rentals are currently active on the market in any area of SAN.

Greed and being money hungry like most people will only lead to an unfulfilled, depressing life and that is not something I am interested in.