That's not because I don't like high returns...I (along with most investors and tenants) don't like undesirable properties.

Also, the gas heat supplies the entire house and is not split by unit, so I would probably end up paying the entire heating bill (very undesirable for me).I am considering replacing the current gas heat with electric baseboard heat.

I'm very aware of how there are pockets of undesirables in the inner metro.  

The same reason all regulations are in place; to stop or limit a socially undesirable activity.I have taken to grabbing signs when I see them, and tossing them in one of my dumpsters.

@Henry Tse, I'd say generally to focus on the peripheral sides of Austin - East or South.

Emotionally undesirable solution is to sell of the current home (killing off PITI & PMI) which will have positive impact on the DTI. 

These always fail because the homes are in such undesirable areas... we can't even rent them.My recommendation would be to check out the United Northwest district on the near west side of Indianapolis.

The properties available were all located near downtown but in undesirable areas and expensive. 

Problem with that rule is that the property maybe so undesirable (for many reasons, not just aesthetic) that you couldn't give the property away even if  you yourself inherited it.

Acquiring the railroads are also great for cash flow, but usually not necessary to win the game.In other words, buying the lower end properties (as long as they are not so undesirable like Mediterranean and Baltic Avenues that no one wants to live there) will give you knowledge and experience in managing properties and they can start creating cash flow for you right away.