Inglenook Neighborhood Question

[Ryan King]

Hey Everyone.  I am looking for more information on the Inglenook neighborhood, located south of Tarrant. I understand that this area is pretty rough (D/F).  The number of vacant homes and crime in the area can be concerning to investors looking for cash flow. The declining schools are also a concern. 

I have the opportunity to purchase an occupied SFR in this neighborhood with VERY healthy cash flow. Y1 Cash-on-cash return near 20% after accounting for vacancy, repairs & PM. I am fully aware that the property I am interested in purchasing will not appreciate much (if any) over time. My goal as an investor is to achieve cashflow. I am okay taking appreciation out of the equation for this purchase.

I understand that placing qualified tenants will be difficult in this area. The property is currently occupied at $1,100 per month with a tenant who has paid on time, so I am not too concerned with the initial lease up (I know, $1,100 is insane for this area). The property was recently gutted with all new mechanicals, so I am not anticipating a ton of repairs or maintenance. 

At what point should I turn a blind eye to negative aspects of the neighborhood?  All I am seeing is the healthy cash flow on a property that should have low cost to maintain.    I would love to think that this area will be gentrified in the next 10 years, similar to East Lake & Irondale.  Any insight from locals who know this area well is appreciated!  BOTTOM LINE- Are the neighborhood risks worth the extremely healthy cashflow?