Highly speculative and risky but, it is a strategy.

I guess investors buying these kinds of property without any discount are just speculating that the market will keep going up.

I went down there prior to the crash in 2007 and new there was a crash coming since I have been trough the tech bubble crash in 2000 when I was finishing my MBA in Finance and had talked to several colleagues in the appraisal field that had seen a great deal of speculation.

So, you'll need to invest time making HUNDREDS of low-ball offers to get one accepted or find a way to source properties BEFORE they are listed by an agent.So, you either have to accept it and speculate that future increases in rents & values will make it worthwhile, or invest out of state.You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:https://www.biggerpockets.com/...

Oh, and it's on an EPA Superfund site... but even then, rents seem to be way below market, even for other units in the same site.I feel like it could work out great after doing some undetermined fixing-up and significant raises of rents, but both are also speculation, and I'm also loathe to give the seller money for value they're not going to do (and asking for a low cap, probably).Anyone have thoughts on this property? 

The idea of betting on future events you have no control of isn't investing...it's speculating...and trouble waiting to happen.Cash flow, positive cash flow, is the risk control that makes an upside down property almost irrelevant...until you sell. 

I hear a lot of speculation about why it won't work or wouldn't be as beneficial, but does anyone in the community have personal experience with a HELOC deal which didn't pan out?

@Michael S. is right, most of the great deals currently are in Harvest, Athens, Decatur.I am personally looking at some parts of decatur right now as I feel that some of the growth in Huntsville might flow into these areas but again it is just speculation.

So when all these speculators are making all these predictions about the next market downturn, I don't listen to them.

Especially in this current market, I would rather have steady cash flow in a good neighborhood with good economics versus speculating on an appreciation play in an overpriced city outside of Ohio.