Properties in not so good parts of town...

Anyone have any experiences with “dangerous” properties? I am looking at 3 duplexes and after calcing 10% for management, 10% repairs and 5% vacancy I am getting about $321/month cash flow. All three duplexes are currently rented with long time tenants.

They are valued at $37500, $59500 and $65800. Comps in the area have been sold for $75000-95000. I drove by today and I was a bit discouraged. To put it lightly there is no way in hell I would drive my bimmer there. This is Louisville, KY. I worry about burglery, drug houses and violence. If I hire a management company then chances are I wouldn’t need to ever collect a check. It IS right around the corner from a decent elementary school but for some reason still looks a little rough on the edges. Then again 100 year old neighborhoods in the city are always going to look a little more intimidating than usual.

I can get almost $950/month cash flow off these three. I am having a hard time deciding to take the plunge. How many people here have been in the same situation? Can you please share your experiences? Sorry to keep posting on this subject; I am just eager to hear multiple experiences.

Again, the general rule is, if you are afraid to collect the rent check, in person, than you have no business investing there.