I recommend looking into places like Cudell, Old Brooklyn, Brooklyn Centre, Jefferson and West Boulevard.

Over time, unless they are true lemons, you should be able to stabilize the properties, raise rents and start cashing in.  

I will say I havent had a PM place with bad credit so if they cant release credit, that in my experience is the least likely issue.

Some places (Cook county, Illinois, some big cities) forbid using criminal records (including felonies) over X years old, so you may not be able to deny just on a criminal record. 

You can drive one hour a month to drive by and ensure the place is still standing, or ask your tenant to send photos.

At some point this has to start to affect their reputation right?

In fact, I just originated a loan with a loan officer at the 4th bank in which we've originated loans together & now originate $8M loans with bankers who originated $80K loans for me when I started.

Hey Karina, you came to the right place! 

Even in South Jersey, where the purchase prices are lower, there is a silent pool of tenants waiting to be able to afford a place to live that may not qualify for a mortgage.

In theory you could also recover 1/6th of the CAM costs, too, but in my very limited experience with mixed use, the first floor commercial could very well push back on that, since they very well may not be utilizing almost any of the common area, depending on building layout.CAM would come from any number of places, commonly:Cleaning and utilities for any common lobby.Window cleaning for the buildingParking lot maintenanceLandscapingCommon HVAC maintenance, i.e. if a single furnace heats multiple spacesUltimately, you will want to be talking with either a commercial leasing agent or an attorney that specializes on commercial leases.One thing to note, while NNN leases are generally great, there is certainly work for you on a semi consistent basis, in creating the monthly escrow amounts and annual reconciliation.