If the property has slab it is even tougher as you do not have X-rayed eyes.What you described above is serious.

Additionally, I will add:-I don't think 38% expense ratio is being conservative, being at 50% is conservative and some buildings exceed this-bank won't even lend on a deal with a DSCR that low, you need to underwrite to at least a 1.25 or the deal won't get done-figure out what financing vehicle you're using, agency debt (Freddie) is possible at a lower LTV and interest rate but comes with requirements, community bank is tougher to get 30 year am on-I see nothing about exit assumptions, you might have to refi/sell after 5 years with higher interest rates and a softer market...then what?

I particularly like 40216, 40258, 40272, 40229, 40291 and 40299 (tougher to find).  40214, 40218 and 40219 also work, but you need to be selective.The areas up and down Dixie Highway as well as 40214, 40218 and will produce a little better cashflow while Okolona, Fern Creek and J-Town will have slightly better appreciation.Reasonable numbers for leveraged & managed properties would be $200-350 per month in cash flow and  2-4% expected appreciation (long-term).

Is the tougher neighborhood worth giving a try for a first time around?

If you can't it will be much tougher. 

A relationship with the Lender will usually help you but I have heard the Banks have gotten a little tougher. 

This can get tougher if the seller has many different businesses and they use a main account for deposits.

It's been tougher than expected.

I will look at this and see if I can apply it accordingly the market here in Miami is tough and maybe tougher for a newbie.

well first off this being a landlord site.. and a positive cash flow site generally speaking.. most will tell you are nuts to buy this.however if you can get the property to just about break even maybe lose 100 a month or so and you have a prime Socal asset that someone else is paying off your mortgage and you think rents can go up a little.and you can EAISLY self manage based on quality of the unit .. incredible tight rental market.. that mitigates a lot of land lord issues.I mean whats the alternative you go 1000 miles away to make 100 or 200 a month.. is that positive cash flow going to change your life..is 100 a month negative going to change your life.now this is an extreme.. but i owned a home in Palo Alto that i chose to sell back in 91 because it would have been 300 a month negative.. well that negative within 36 months would have been positive.. and i sold for 500k and today that home is worth 3 million.... and once it got positive it probably would have been positive up to 2 to 3k a month coming into the 2010's.... and someone else would have paid for my home.. plus grade A tenants at all times.. being prime Palo Alto.so thats one extreme.. its really only in low to no appreciating markets with tougher tenant bases that turn a bunch that positive cash flow becomes more acute or for those that want to one day live on their cash flow and be in the business of landlording.. thereby acquiring 50 to 100 doors.