(In a lower income area, you will often need to increase your vacancy reserve as people tend to be more mobile and more likely to encounter issues, which would require them to move.  

(LOI tends to be more geared towards commercial properties, whereas the POF request will apply to both residential and commercial.)  

These organization are also therefore less rigid and tend to have less rules.

Rents and median incomes tend to be higher here.

The downside is tremendously reduced when buying at 26%, 35% and 33%.Your margin is 16% and the top 10% doesn't count because its vapor and if not vapor is closing costs and holding costs plus.

What neighborhoods tend to be good C+ to B rental neighborhoods?

However, the Midwest tends to be more stable.

Echoing what Troy said, rules and regulations here tend to heavily favor the locals citizens. 

This is exactly what I did, I bought properties 40 cents on the dollar and needed much more work then I anticipatedA lot of the lower income properties tend to have tenants who live a month-to-month lifestyle.

Even if you had great credit and 40k in cash, HMLs tend to be hesitant to loan to someone without flipping experience.