Its a low income neighborhood and the tenant had some financial hardships in the past which I have agreed to overlook in exchange for last month's rent up front (rather than collecting just the first month and a security deposit). 

We will be visiting Des Moines mid-July to check out neighborhoods, etc.

What to look out for in determining potential neighborhoods (I am not local to the area and is curious on how "hot" neighborhoods started out and what signs to look out for)How bad can a bad investment be?

Don't buy in the roughest neighborhood in the urban core.

If you still have time you could rent it for a year, pay down the principle and then sell it for more than 55k if it keeps appreciating.That's another factor, is it in an appreciating or depreciating neighborhood?

The lots are directly off Hwy 281 in a quiet older neighborhood with a median home price of around $150k. 

I am finding it really hard to find a property that fits the Loan Limits with a FHA loan.

Don't know how long you've been away from The Land but The Ultimate Guide to Grading Cleveland Neighborhoods is always a good market refresher so you may wanna give that a read.Got any good Bill Belichick stories?

The other day, I was driving to MIL's house to drop off the kiddies, and there it was...the worst house in the best neighborhood that you always hear about. 

My properties are concentrated around Gravios park, but I'm looking to expand into better class neighborhoods.