Generally speaking, it's difficult to buy on the "fringe" of the good neighborhoods because good tenants are very hard to come by in these areas.

Also agree with other posters that you really must define what your goals are.When starting I was investing for income generation, with appreciation being a fringe benefit.

It not hard to find the fringe C/C+ class neighborhoods.

I have focused on the fringes a bit more and have been able to score some decent properties for investors.

I am not subcontracting the management however.The pro:I consolidate all payments and expenses under one entity.I can decide to take a w2 income from it if I need to show income for a future lender and also I can use it to fund a solo 401k.I get all the fringe benefits of a Corp (health plan, vehicle reimbursement, ...)I am expensing all my ancillary cost pre tax.I am separating operation from ownership and get another layer of asset protection.The con:Another entity to manage, another tax return, more feeConvert some passive income to active income.You may need a license for property management in some state (but you may have an exception for owned properties)

If you want to get $1200 a month or higher for a 2/1 then you need to be looking in Trolley Square and maybe some of the fringe areas of Cool Springs/Little Italy that boarder Trolley.

A lot of poverty and low employment folks on the fringes of the small city.

Reality though is that these are fringe policies by candidates who at this time have no real chance of winning. 

Returns are higher along the fringes and adjacent secondary markets too. 

Having a C corporation allows you some deductions that are otherwise not deductible, but they're things like fringe benefits (insurance, in particular.)