Low quality assets in okay locations throw off cash flow (sometimes) but generally do not have long term appreciation or high quality dirt value for redevelopment in future years.Some areas do have massive transformations but those are big gambles over time.

@Jay Hinrichs I do love this book and it has really helped transform our business. 

We transformed a two bedroom one bathroom house into a three bedroom two bathroom house with an additional bathroom in the garage and staged the garage as living space.

In addition for the previous suggestions, make sure you have a clear plan for what you want to transform this place and make a profit from it.

You will also have to pay for the new electric meter socket, wire to the transformer, and electrical panel inside the house.You may have to re-do the plumbing in the house to split up the two sides of the house so they can be on separate meters. 

However, suburbia itself is undergoing a transformation, with many initiatives, both public and private sector, both large and small, leading a a more town like environment - something like what the small towns surrounding large cities were like in the first half of the 20th century.  

If that's the case, then you're right, that entire area could make a pleasant transformation.

Properties are getting transformed hugely the last year.

I've seen some properties that can be transformed into great deals with questionable cap rates.

Indy has transformed from a Rust Belt city to a thriving, modern metropolis.