I’m looking to replace them, and this is uncharted territory for me.

What has historically been considered impoverished, dangerous, and blue collar areas is now turning into a place where young white collar/creative couples are buying homes.

This experience should be enough to show you that you're walking a dangerous path.

You're in serious landmine territory.

There will always be heightened risk and danger with cheap. 

Just because people have moved out of the block to fix it does not mean that the gang gave up their territory. 

I want to say rent based on the responses but if it doesn't cash-flow something it's dangerous.

Purchase price: $1,700,000 Cash invested: $750,000 Sale price: $2,675,000 Original plan was to remove existing home and build 6,500 sf single family home on 20k sf territorial view lot.Instead, we sold as shovel-ready project, fully entitled, to another developer for significant return. https://www.redfin.com/CA/La-Jolla/6389-Castejon-Dr-92037/home/4922498 What made you interested in investing in this type of deal?

This is new territory for me.

I would prefer they do much more than they do ..but alas, I am realistic and know it will be done dangerously ,cheaply , and unsafely by them