To understand the economics of it: A broker might typically get paid 3% of the lease value for a 5 year lease; so if you rent a 1200 SF space for $2.00/SF, the calculation is:1200 SF x $2.00/SF = $2400/mo * 60 mo = $144,000.  3% of that is $4,320. 

This area has seen an increase of lower income families over the last decade or so it is on a downward economic slope hence why it's so cheap for investment.

The area has gentrified in terms of economic class and has a strong demand due to its proximity to the train line.

Because of the Neighborhood Improvement Zone or NIZ in Allentown there is economic development going on in the downtown area.

If so, you'll want to find out what the economic vacancies are in your area for similar properties.

I would also look at the economics of airbnb (or similar) in your area.

But if you buy right and it cash flows well, and its in a economically strong MSA, it will most likely be higher in 10-20 years. 

How are 11 top entrepreneurs preparing for the next economic downturn?

Sure you might not get the kind of cash flow that a cheaper property will get, but your property value will go up $10-30k per year during growing economic times and have limited downside during recessions.

Which probably means you are going to need to find something dilapidated, find shot term funding, manage a rehab crew, possibly wait 6-12 months for it to season, then connect with a bank that will give 75% of your money back out of it in a refinance.In my experience it is very difficult to find rent ready real estate that produces 29-38% cash on cash return without significant involvement in adding value economically to the property.