You may have to renovate a property, building maintenance fee may go up, rent will come down and vacancies will rise as the old properties become undesirable with time.

It is similar to the credit score: good points for desirable behavior and bad points for undesirable behavior.

All personal opinions aside, mine included,What I'm gathering so far is that even if you have an LLC, that does not protect you from paying for defense in the event of a suit.That's not to say let's not get LLCs, that's just to say, I'm finding that the LLC is only a small part of the equation...Best to have a large reserve or heloc for the undesired times this may happen?

Thats the 100% truth, some of these so called Turnkey providers and/or marketing companies really grossly misrepresented various real estate deals, we still get calls from Australian Real Estate investor that have distressed assets or assets in very undesirable areas that were doomed by by operators.

I’d be happy to show you MY PERSONAL portfolio that has plenty of these “undesirable “ properties that have been getting over 2% for a consistent time and yes I do account for ALL EXPENSES including cap x, vacancy, etc.  

It isn't that sub-30k properties are undesirable, but looking for them in high crime areas will make your goals very difficult to achieve.Think of it this way: imagine you're a higher quality housing choice voucher holder.

Considering opportunity costs will just make it more undesirable.

Now it's true that politics can make an area "undesirable." 

Aside from over-valued coastal markets, the other lurking specter is the US abundance of undesirable commercial properties in the suburbs and exurbs.

Unless this property is in an undesirable neighborhood and you can't get anyone better than this, pass.