Personally, I steer clear of anything lower than a B-, because lower grade properties and areas just cause way too many problems, the appreciation is usually not there, and the cashflow just isn't worth the hassle...if the area is C or lower, I'd be thinking about selling the property...If it's in a higher grade area (B- or higher), then I'd be thinking about doing some sort of value add.However, you haven't provided enough info for us to give you much detailed feedback...For instance, what will the property currently rent for, and what is your current debt service on the property?

Now return on equity on that case is not high at all but I would just bet on appreciation here.Option 3 - I don't pay off my principal and keep making minimum payments and save for another property on the side and when I have enough for a downpayment(30% at least) on a new property, I move out of this one and keep paying the rest on this property after whatever rent has covered.What option would you pick here if any?

Those to me are more like C or lower.

There will ALWAYS be TONS of interest in Seller financed properties, people will always have bad credit, people will always need somewhere to live, and therefor seller financing is key.

Like Elizabeth said, you aren't going to get the same kind of returns that you could in those C or worse neighborhoods but I also think you don't get the same kind of headache.

Cor Bay:Below is "path of progress land" (after a patient 30 years). 

But, like any appreciation play, it's just an educated guess.I prefer the northern and eastern counties because if you can find a good deal here, you won't need to bet on appreciation since it's practically guaranteed (baring a recession, of course). 

Think about it it, you want a lender to bet on a deal you aren't willing to cover yourself?

All units 2br 1ba.One roof has a leak, so it needs repair or possible replacement.The street is probably C or D class in my opinion, mostly similar quality duplexes.

And you have to look at the area, rural, ghetto, class A or B or C or D neighborhood?