Welcome to BP @Cormac Terry Check out the Ultimate Free Beginners Guide That will give you an overview of strategies and may help you decide a direction.Good luck - Ned

Without knowing your market specifically and just using your high overview numbers of 40k purchase price and a rental rate of 975 I would definitely look into this further.

In a bad neighborhood, some extra attention is required.1) You must do very comprehensive checks on tenants.

All of it was helpful and gave me a broad overview of what I needed to know.

Now that Craigslist has a map feature in the housing section you can get a quick overview there of what other places are renting for that are close to your property.

Most importantly, be sure to get a comprehensive professional inspection.

My recommendation  would be for you to plan for a 1031 which would be more comprehensive tax relief and simpler to navigate while you investigate OZs. 

We use Proper insurance and it is very comprehensive.

Insurance carriers are really tightening their restrictions this year so I think it is unlikely you will get a comprehensive insurance policy (RCV) without a roof replacement. 

If you are starting with little cash, then either learn to put a good-looking, comprehensive underwriting package together for a private lender (typically the friends and family program in the beginning) and/or start building a wholesale buyer list so you don't have to fund your acquisitions.