The house is next to nothing at $10k, its a 2/1 1000sq. ft. and in a rather undesirable area of the city.

There are so many people involved in this business, even if only peripherally. 

The key here is tenant screening and proactive cost management.Class C - Properties in undesirable areas with cash based tenants.

The difference between violations to the Airbnb review guidelines and constructive feedbackWhile this is an undesirable avenue it does occur and we are glad there are rules and guidelines in place to follow.

I'm looking around for a 5-10 unit to just scope different areas and what's available online (though i have heard anything listed is something nobody wants - not sure how much truth there is to this with multi property) and not sure whether metro (like close to down town areas) are better or the areas peripheral to the metro areas or in the suburbs.

However, if these numbers happen to be accurate, it equates to a 16% cap rate which suggests it's located in an undesirable, crime riddled area. 

If that doesn't work, take a dose of @Rob K 's advice and mix it with a dose of @Ryan Richard 's advice - let an undesirable occupant move in for a few days.

Right not you have a sub-par unit, in an undesirable neighborhood within it's market, that doesn't cash-flow, and doesn't appreciate.FYI-When I say "Ghetto" I mean within its market.  

I've been searching for information on this topic (hence me finding and commenting) because I'm considering this with a house I own that apparently has some "undesirable neighbors" that make the property a lot less desirable to most tenants.

The area is undesirable to some due to the schools, crime rate, average incomes, and racial makeup.