In fairness, I also think that if you buy quality property in quality neighborhoods then you are more likely to attract quality tenants and make your PMs job (and in turn your life) much easier ... the downside is that these type of properties will not cash flow as much on paper compared to rougher and more depressed areas, but the cash flow is steadier, less management intensive to collect, can actually be achieved in reality, and is more likely to grow over time rather than diminish ... so, make your PMs life easier by buying these type of properties and hopefully they will make your life easier in exchange.

This is not the great depression. 

FOR SURE  any one with a current vacant will jack up the price probably 20 to 25% it's a landlords market,, and also a sellers market,,  the only thing is the renters are relocating ,, depressed income,, not stable job situations if relocating so,, it's a credit score,, based decision for landlords,, current income is hard to verify..

Returns I'm seeking: - ≥8% Cash-on-Cash in year 1- ≥18% 10-year IRR - ≥$150/mo in monthly cash flow after all expenses in year 1Properties I'm focused on (I am flexible on the area as long as the numbers work): - Class A/B neighborhoods (middle class incomes, low crime, safe for families, decent schools, higher rents (>$900/mo)) - want to stay clear of C/D properties to avoid tenant problems and depressed neighborhoods, even if it means sacrificing some cash flo- decent potential to be exited to an owner-occupied buyer in 10-15 year timeframe rather than a "lifetime rental" - 3-4 BR / 1.5-2.5 BA, ideally built within last 40 years- Major CapEx (roof/HVAC) either recently rehabbed or with 10+ years of lifeAssumptions:- 6-8% combined vacancy / maintenance / CapEx reserves (may be higher depending on the property)- 75-80% LTV financing- 2-4% annual appreciation, depending on the market (though this is just bonus for the IRR in the 10-year pro forma) I feel like these are pretty modest objectives but I haven't really been seeing many properties that come close to meeting my expected returns, so I'm second-guessing if this strategy is going to make sense.

JCC,Your storys depresses me, the world can be relentless :(.I `can and will talk with the city inspectors before, but my main question is, should I not spare a thought about it or should I after all?

Depressed markets will have a good profit margin compared to where the foreign investor may be currently living/investing.DisadvantagesUneducated buyers of area, may take awhile for them to feel comfortable in purchasing.

A little depressed by the circumstances around me, I continued to save and finish my studies to become a teacher (my second passion).

Trying to save money by not using an agent, unless your market is very depressed, is hard.

This is one of the most economically depressed, high crime areas of Memphis.

In 1991, after doing extensive research, and against the advice of some nearby Brokers, I became a "pioneer" in an extremely economically depressed, and crime ridden neighborhood in Chicago.