Neighborhood is a big factor, I would say B-/C+ is good for MF; I donot know what is your budget but you will be looking at relatively higher prices than say you were looking in Cincinnati or Cleveland.

There can be good investments in areas I have labeled bad and there could be bad investments in areas that I have labeled good.Here is the list:Highest risk, highest crime, highest turnover areas:64130 – listed in 2009 as the “murder factory” of Kansas City - avoid64129 - avoid64128 - avoid64127 - avoid64126 – avoidHistoric NE areas:64124 – both good and bad areas for renting64123 – both good and bad areas for rentingKC Downtown:64106 – mostly commercial & condos – great area for rentals and flips64108 – mostly commercial & condos – great area for rentals and flipsMidtown:64109 – both good and bad areas for rentals64110 – both good and bad areas for rentalsWestport/Plaza/Waldo/Brookside area:64111 – great area for rentals and flips64112 – great area for rentals and flips64113 – great area for rentals and flips64114 – great area for rentals and flipsSouth KC/Grandview/Raytown area:64030 – mostly good rental area64134 – mostly good rental area64136 – mostly good rental area64139 – mostly good rental area64138 – mostly good rental areaLee’s summit Area:64081 – great area for rentals and flips64082 – great area for rentals and flipsBlue Springs Area:64015 – good area for rentals and flips64014 – good area for rentals and flipsIndependence Area:64052 – mostly bad rental area64053 – mostly bad rental area64055 – mostly good rental area64050 – mostly good rental area64056 – mostly good rental area64057 – mostly good rental areaNorth of the River Areas:64116 – mostly good rental area64117 – mostly good rental area64118 – good rental area64119 – good rental area64151 – great area for rentals and flips64152 – great area for rentals and flips64153 – great area for rentals and flips64154 – great area for rentals and flips64155 – great area for rentals and flips64157 – great area for rentals and flips64158 – great area for rentals and flips64068 – great area for rentals and flipsI hope this can help some of you new investors and maybe some seasoned investors as well.

I'd be careful no matter where you choose but particularly careful if you go outside of those three areas.Another factor is finding good property management. 

(Beds) Michigan’s governor is already using prisoners and prison factories to produce masks and medical suppliesMichigan has produced over 1.25 billion barrels of oil and more than seven trillion feet of natural gas since the discovery of the Saginaw Field in August 1925. ...Michigan has more than 14,000 producing wells of oil and natural gas. 

Another factor is we will be using funds from a HELOC to use for our investing.  

The cost of setting up a property varies depending on the market (are we talking bare bones factory housing or high end STR), but either way, the physical work of getting it rent ready is a pretty big job.

The way I calculate things, if the deciding factor is the difference between the sale price of the old house and the total price of the new houses, that would be a $90,000 difference.

The next factor is since you are looking to use that towards a down payment for your next investment you will need at least 20-25% down payment.

I think the idea of paper pushers and more simple listing and real estate services seem cool in theory, but that human factor is still very important when selling or buying one of the most expensive things in your life.

wow thanks everyone for your input- definitely seeing some varying perspectives- the building is in poor condition, but the area does have some serious potential- however @Troy S. is making me think the hassle factor is going to be very high, and the property would need serious capex to get it to an average renter's condition