There are also other considerations - roof loading, wind shear, switching & wiring decay - that can eat into your profit pretty heavily.That said, you have two major things in your favor: density of usage and a favorable climate.

OTOH if you know the area they can be turned around.I'm watching one like a hawk right now that's all section 8 in a very nice A area because the owner is to cheap to spend anything on the building and is letting it decay.

They can claim that the stable, non-gentrifying city has equity....as it falls into decay.   

One exception to your thought process many times in those areas that decay like that Commercial LEAVES and the nice NEW shopping gets built where there are nice new homes and incomes that can afford to shop.. what a lot of these areas is left with is the corner liquor store .. you know the ones that have Bullitt proof windows and sell cigarettes' one at a time.. 

You just can’t kill enough babies with abortions ro counteract all these numbers. 

My suggestion was to start using the home -which actually serves to preserve it, whereas leaving a home empty an unmaintained results in steady decay. 

You have to also account for decay in value of the derivatives.

If it has galvanized metal pipes, those eventually decay and start to flake, which causes blockage.

If it’s on a slab, duct scopes can reveal blockage, disconnects, decay, and is a great idea.Scoping a sewer line is a great idea if there are a lot of trees on the property, people drive or park where the line runs, or the house is very old.

That way I have enough of a buffer to counter act any risk involved.