IMO: Two interesting observations there John. 

This is an interesting observation.

I'm getting my finances in order and want to observe and get a little experience before attempting to participate. 

This isn't a criticism of the tenants, this is a practical observation.  

In my 40 yers in this industry here is what I have observed.1. 

You can fix it, sell as is, get payments (observing Dodd-Frank), etc.

My observation would be that your return will be better a block or two off the beach.

San Pedro, I got the impression that the police let them do whatever they like, and they were drunk and hostile, at least back then in that neighborhood; was not so west of Gaffey, though ... probably not PC, but that was my honest observation.

Either way, those are my observations for at least the Northern VA part of the DC Metro Area and how I adapted my investing strategy around the area. 

If you live in the north, however, i think it's important to observe what happens during the snow melt.