He has always paid his rent on time but is a nuisance to the neighborhood and his(my) yard looks like a junk yard.

I've got a friend who said that an indian casino is going to be built next door to his small neigborhood (50-60 homes in neighborhood) -- the casino property will be directly adjacent to the neighborhood (as-in sharing a common boundary line).

Then I noticed all the foreclosures in my neighborhood which were starting to get neglected.

While driving through a neighborhood, we came across a house that is empty.

Don't completely avoid Natomas, Antelope, Rancho Cordova and Elk Grove, just make sure you're purchasing in neighborhoods where you would live yourself.

I've lived in some rough neighborhoods myself over the years, so I can deal with a bit of roughness as long as it's not extreme.

Oh, and the area the home is in is fairly decent..its in the inner-city..i havent actually went by the property, and i dont wanna label it as a war zone..cause here in st.louis..some parts of the city will be i quiet neighborhood, and 10 blocks over would be a war zone..help!!

Problem areas - if neighborhood is so run down it looks like a war zone, drug dealers are openly selling on the streets and prostitution is rampant - perhaps you should look for a better area.

., and a cap rate of 10%, I come out with a fully loaded ARV of $396K which seems absurd considering the neighborhood and the other apartments in the area.

Your goal should be getting the value towards the top value of the neighborhood.