That would be what we call 'D' class neighborhoods, and possibly some C- areas too.We grade neighborhoods from A+ thru D- and our clients stick mostly to B, B+, and A- areas because of the demographics and tenant class you find there.

Tons of New Dollar Generals for sale between 5.5-7 cap with 15+ years leftAll absolute NNN..Your better off taking a lower cap with longer lease unless you have a plan B for a dark building 

Yes, I may not see major cash flow but a) new constructions means the builder usually offers some discounts towards closing costs, sometimes up to $5K and b) to me, mental peace as a remote investor is something I can't put a price tag on. 

@Ry Eikleberry $450k will buy you a decent "B" quality fourplex that should generate anywhere from $3,400 to $3,800 per month in gross rents.

I called my attorney, cut him a check for $10,000 and told him I wanted to do a 506(b) type fund.

Unless you're in Class A and B multifamily.Can you look up their previous application for employment information? 

@Karl B. and @Alex Olson Thanks, guys!

Cliff,  This is not how you analyze an investment opportunity, you need the following:1) Purchase: $575,0002) Total Annual Operating Income: $43,000 (1,200x3x12) 3) Total Annual Operating Expense:    a) % Vacancy:   b) RE Taxes Property:    c) Hazard/Insurance:   d) Repairs & Maintenance:   e) CapEx:   f) Utilities-other:   g) HOA:4) Actual Capitalization Rate:5) Loan Information   a) Down Payment: $0   b) Loan Amount: $575,000   c) Acquisition Costs and Loan Fees Rehab Funds:   d) Length of Mortgage (years):   e) Annual Interest Rate: 6) KPI's:   a) DSCR:   b) 1% rule:   c) 50% rule:   d) Cashflow (before taxes):   e) ROI:    Plug it in I'll do analysis for you.

@Akeim Fin I haven't done it, though I've seen leases for only part of the year of course, especially in student situations.My thought is, sure you can try to put such fees in, but collecting on them if the tenants didn't pay those would be a different matter entirely.I think if you did this in an A or maybe B area, you might stand a chance of having people pay those fees, but I wouldn't count on them.And as you said, it's a legal question in general, and involves doing something in a lease which is uncommon, so I think it's one best posed to your attorney anyway.

It's on a quiet dead end street in a B/C+ neighborhood.