I never underwrite using the CAP rate ... in fact, the only time I have any curiosity about the CAP rate is when I am thinking about selling a property (and am trying to determine how much someone will pay).CAP rate is a dangerously misused metric which is far to frequently batted about as though it has significance beyond being the inverse of a P/E ratio for a business/property at a point in time.

If it is a breed that might be seen as a threat it can also be on you for allowing a dangerous animal to reside there!

Is it ok to buy rentals in dangerous areas where I, as an owner, would be scared to visit? 

If on purpose...besides the legal dangers, you needto have a mirror talk with yourself about your goalsand the fears that are keeping you from them.You will find that you will not prosper with a cheater'smindset.

Investors who experienced the housing crash have a dangerous bias that it will happen again, but it is unlikely. 

There is a good case to be made for the midwest, as evident by the many posts:- plenty of fresh water, no droughts- no hurricanes, no tornandos in the upper half- no fires or smoke- no danger of rising sea levels- no earth quakes- lower cost of living- lower cost of real estate- landlord friendly- underdog, the midwest is better then the reputation it got in the 1970s and 1980sMy portfolio is in Milwaukee and I feel I got lucky.

Small cities can be overly dependent on a single market sector or major employer.Never invest in a city unless the state and city populations are both increasing.Do not invest in any city on the Neighborhood Scout’s list of the 200 most dangerous US cities.Prices and rents are driven by demand.

But, some people think interest only is dangerous. 

She said, maintenance did not know how to patch Hardie board (the siding appeared to be wood), and the new renters did not care about them, so they just left them (Caulk and Spackle did not exist for this maintenance person I guess).She said a couple of other units were the same way (I thought WOW--Dodge City).I asked her to come and finish my outside walk with me and point out the other bullet hole units--she declined, and said she was afraid of some of the renters.So I went back out, (there were two of us, and we looked a lot more like Five-oh then she did, so we expected they would not try anything with us).About three minuted into our walk we spotted another apartment with bullet holes, and it looked like someone had taken a bic lighter and held it against one of the holes (char marks) to burn the building down, but was unsuccessful.)We were standing there talking about this char mark situation, when a couple of buildings away we heard two shots, and then another two--real fast--bang-bang, bang bang.We just left and texted her on the way out, we were off the property, and thanks....And both agreed this was not a property we wanted to get involved with.We thought it was class C but it was class D (Dangerous).I didn't feel safe until we were inside a Wendy's many miles away having Chili.

Here's the law: https://floridadep.gov/air/permitting-compliance/content/asb...Asbestos is not dangerous until you renovate or demolish.