I would start by getting a realtor in the area and ask them to show you properties and find out about the neighborhood.

I started in lower priced neighborhoods.

Plus, they point out that the properties are nicely rehabbed, in solid neighborhoods with high rental demand, tenants are rigorously screened, and to cap it off, the buyer may well sell the property at a big gain well before these repairs and capital expenses start hitting (remember, you presumably "captured" a boatload of equity when you purchased), at which time you can roll into another property.At any rate, if you hold the property, the assumption is that Years 2-30 will experience none of these expenses.

The odds of anyone paying thousands in uncollectable back rent, versus buying a huge TV, a nice car, going on a shopping spree, etc do NOT run in your favor.

It literally sits on the “Wrong Side” of the boarder, between a historically not so good neighborhood and an up and coming and popular neighborhood.

The banks want the property sold, not tied up while it's shopped around.

He owns a 4unit multifamily in a nice neighborhood, the mortgage is around 2k a month (roughly 360k).

Have you shopped other banks and credit unions?

"It needs to go in the shop for repair."

Based on the neighborhood and size of the house/ lot, I estimated the AVR at $65K and can place under contract for $5K.