Slumlord or not?

Well I found some deals that were making good returns but it gets a little more complicated.

16 x 2 bed Units in the worst street in town. All tenanted, low vacancy.

12% cash on cash after all expenses

Went to see them and they were as rough guts. I dont know how people live there. Not to keen about being a slumlord. I would want to make them more livable, but as it is in the worst part of town, any money spent, seems that it would be money wasted as there is nil capital growth.

The other thing is that my lender mentioned that usually anthing over 4 Units ends up being commercial property and they would need to treat it as such. I assume this means higher interest rate and they will want more security.

Im wondering if anyone else has bought multiple Units and what hidden charges if any. For instance insurance?

Or where to get finance for this sort of deal.
On one hand Im thinking if its making money, who cares about capital growth. On the other, Real Estate agents have warned that its a real dodgey part of town and there is no Capital growth, and troublesome tenants.

Ill probably give this one a miss but would still like to invest in blocks of more than 4 units.

Any comments appreciated []