However, I don't think this will make an impact on the investment decision.

Housing can be influenced by their labor and business decisions.

@Chris Parrish Yikes - always a tough decision especially when you didn't choose the tenant in the first place.

These properties tend to be management intensive which is the trade off for the better returns.

Is this a risk that is taken depending on the investor's tolerance or is this just never a wise decision?  

Due to unforeseen circumstances surrounding the school I originally wanted to attend I had to make a big decision.

Hi Sebastien,In a "High Crime" area of the US I'd be very reluctant to give anyone $500 to move.That's because it seems they would be very likely to not keep their word, and take the $500 and just stay there anyway.To someone without a lot of money $500 in the area like that is a LOT of money.It might be less costly over all to evict and let the Local Police put them out if they are still there.Just my thoughts on this.Good Luck with your decision!

Good decision

Plus I also live very close by...and it gives me something to do ;) As long as I don’t get too stressed by the usual repair calls, tenancy changes, etc. it’s really sort of like a giant game, and my goal is to be as fast and effective with every decision.

A few good decisions now can pay off huge with an early start.