My goal is to rent and sit on it, but my fear is that it will be undesirable in the long run due to it being the only multi-home in the neighborhood.Any tips are much appreciated. 

I would say to find a good realtor you trust that can steer you away from the many undesirable neighborhoods here.

I would rather buy in a good location with good tenant pool for lower returns, than in an undesirable area with high on paper returns (which can often turn out to be lower returns in reality). 

Usually, the pre-rental medical screening tests that you put your prospective tenants through would have caught this and any other undesirable diseases they might have. 

It is likely in an undesirable area, and in need of many repairs, you may have difficulty finding future tenants, selling the property and you will likely have much higher than average repairs. 

So, if a home in a undesirable location is selling for the price of a bag of Skittles, is that a good investment?

What is an A now may be a C in ten years and a total ghetto in 15 years.If the neighborhood changes for the worse, you may not be able to rent the house or sell it at any price in 17 years.Or just the houses next to your house may change making your house undesirable to rent or sell. 

I am new to BP as well and have little insight as to actually owning property in that area but i can tell you as a life-time resident of Tacoma, that i generally avoid looking at deals in that area as there is a high amount of crime and other undesirable activity in the area. 

It definatly doesn't make them "undesirable".

If it were me, I'd pass on this one, because if you're planning to buy more properites in the future, this may put your debt to income in an undesirable range for future loans.