A War Zone can easily be determined by driving through (quickly) on a Saturday night. Are there police throughout the neighborhood? Are there frequent shootings? High crime? Drug running and gangs in the open? Multiple cars parked in the yard--some on blocks? This is a war zone. You would never accept cash for the rent in a neighborhood like this.
Most of the houses in this area are rentals. These homes can be bought dirt cheap, but you better hire someone to collect the rent, and you better plan on chasing after the rent every month. Also plan on major damage when tenants move out.
Who should invest here? First of all unless you have LOTS of experience managing these types of properties stay away. Your best bet is not to own them at all! That's not to say you can't make a really good living in these areas. You absolutely can! These units are cash cows. But why be in the chain of title? And why tie up valuable resources?
If you want to make money in War Zones rather than focusing on owning properties, focus on controlling them. Offer a long term master performance lease to a burned out landlord. Perhaps with an option for you to buy later. Then get your feet wet with very little risk.
Just know that while these properties do throw off lots of cash flow when properly managed, they will never appreciate by much. You would never want to try to "flip" or "rehab" a property in a War Zone.
Maintain a very strict but fair policy with your tenants. Work with the local municipalities, the police and local urban renewal groups to help revitalize and clean up the area. Run thorough background checks of prospective tenants! Do it right and your tenants will provide you with a good lifestyle. Do it wrong though and you're in for a world of hurt.
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