We have some cheap areas in the city of Milwaukee that get a lot of attention from OOS investors, you might call it fools gold and local investor know to stay clear.Delinquent rent is not the biggest concern for me personally, a roughed up house is a much bigger financial damage - currently dealing with one (primary tenant, the mother moved out, left daughter in the house, could not afford rent, started sub-leasing to a bunch of different individuals living with her until I caught on to it; the house used to be in pristine condition with new kitchens, bathrooms, hardwood floors - we are probably looking at over 10k and a dumpster full of junk, plus a month of unpaid rent $1,800 and 1-2 months to get it rented again)  We don't have that very often, because we are renting above median price and have usually A quality tenants, but once in a while we have a case like this.For more on this, I wrote a post a couple years ago: What they don't tell you about cheap rental properties.

Nice hardwood floors, premium laminate in kitchen and basement.

Nice hardwood floors, premium laminate in kitchen and basement.

Beautifully refinished hardwood floors, new fixtures and amenities.

Refinished hardwood floors, remodeled kitchen with granite countertops, fabulous backsplash, new stove, dishwasher, microwave.

Refinished hardwood floors, remodeled kitchen with granite countertops, fabulous backsplash, new stove, dishwasher, microwave.

Beautifully refinished hardwood floors, granite countertops, new fixtures and amenities.

However, the seller's rehab estimate included updates I don't think is necessary to take care of right away (extending the size of the master suite, knocking down non-load bearing walls, and replacing all the flooring even though there's nice hardwood floors across most rooms).

Refinished hardwood floors, remodeled kitchen with granite countertops, fabulous backsplash, new stove, dishwasher, microwave.

You can do a reasonable linoleum flooring and hard wood simulation in a C area but will want nice tile and actual hard wood flooring in an A district.