In banking, this is called the 3 C's: Character (from credit score), Capacity (stable income), and Capital (down payment, reserves).

This is a typical C class neighborhood in an industrial area, but once again, crime isn't as bad as you'd think it would be. 

What is the age of the A/C?

Congrats on the deal.My guess is that your deal was done with a 506b not a 506dRule 506(d) and “Disqualified Persons”The new 506(c) rule arrived with a companion 506(d) rule, which prohibits “felons and other ‘bad actors’” from conducting Regulation D private placement offerings that rely on any Rule 506 (i.e., 506(b) and 506(c)) exemptions, where a disqualifying event occurs following the effective date of 506(d).

Originally posted by @Scott C.

Your question more appropriately should be....how do you manage C/D class properties.

This property is in North Las Vegas in an area I would rate as a C+ area, consisting of mostly older homes built in the 60's and early 70's with nice size lots, for Las Vegas area, around 6,000 sq/ft.  

@Marc C., I'm in 7 properties and 6 of them are set up exactly as you said.

At least I got a couple months rent out of it (she/they were even good about paying early).They've kept up the place decently for a "C" property, and I don't want to be a stickler on lease terms and end up getting caught up in whatever they have going on.  

Then use the prevailing cap rate based on A,B, or C class property in your area.