Seth,
I've been in the business for many years and here is my take regarding C properties. I currently own a handful and I do not have any of the problems mentioned above.
Here is my take...
1. The C properties I buy are on decent streets. No vacant houses, drug houses on the block, graffiti, etc... We buy houses where neighbors take care of their house.
2. I get double deposits so the likelihood of the tenant trashing the place is minimal b/c they will not get their deposit back.
3. We do a great job with our rehabs and we are very selective in choosing tenants.
4. We treat all tenants with the utmost respect and professionalism. They know the rules and we do not play regarding to late fees or bs repairs.
5. We have a great lease so everything is crystal clear.
We manage our own rentals. Managing C properties is not for everyone. At the end of the day, everyone wants a nice place to live and pay reasonable rent. We are very selective and we buy right. C properties are cash cows and I would buy them all day.