The home has fire damage, evaluating this property will be tricky, as you don't really know how much damage has been done to the property, in addition, the home  was built in 1964.  

If you have a C class building in a B class area, you can evaluate it as a potential B property given you rehab it accordingly. 

I'd be interested in how you evaluate these deals... especially the apartment houses

I will use my friend Steve, who invested in a lower income, higher crime area in CT while I stayed in a good location in Brooklyn.When Steve does his Due Diligence for prospective tenants, it is almost pointless to evaluate for high Credit Scores.

I'm evaluating a potential deal on an attached condo in the 80917 zip of Colorado Springs, CO.

Most of what I've seen and studied focuses on evaluating a potentially good deal as far as cash flow or a strong equity position.

I would encourage those looking to learn more about specific property risk to visit the flood risk evaluator which can review elevation certificates and flood zone determinations for mistakes.

@Jeff Berg great idea and on point with how things should be evaluated on a renovation project.  

Most seem to rely on issuing cease and desist orders.One needs to evaluate the laws of the state they're operating in, the state agency's interpretation of these laws, and the agency's historical enforcement actions as well as the political climate relating to the above.Blanket statements by responders while well intentioned are inaccurate; each state is different and research undertaken on the local level.

David,As the article above states, one should use caution when using CAP rate as an analytical too for evaluation a real estate deal it does not factor in the costs of financing (mortgage payment).