When an investor decides to buy a 100 year old property in a low income neighborhood it's pretty clear that they are only going to renovate it to the standards of the comps.

However, have you considered partnering with someone a little larger in scale for a deal or two?

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.

If you are going to be an owner-occupant, want a low down payment, and are planning to do a renovation, the FHA 203k and Fannie May Homestyle loans are your best optionsHow do you know the property is currently upside down on the mortgage? 

Purchase price: $45,000 Cash invested: $40,000 Property Renovation Overview: 1453 Southfield Dr, Columbus, OhioWe are excited to showcase the extensive renovation of 1453 Southfield Dr, a testament to our dedication to revitalizing living spaces and enhancing the experiences of our tenants.

I renovated it down to the studs.

Lots of older houses but there seem to be several that have the potential for cash flow and while not exactly modern on the outside, have been renovated inside. 

Landlord-tenant regulations are a bit complex in California and getting hands on is the best way to learn before expanding into larger investments. 

One last thought is your likely going to be getting a larger depreciation write off with new acquisitions.

While they may or may not be professionally managed, Class C properties will have some deferred maintenance issues and need renovations and upgrades.