If you have owned the property for over a year, we can pull the income off your Schedule C or E, depending on how you claimed them.

While it probably will happen, I wouldn't bet on continued appreciation and clearly nowhere near the recent surge rate.Consider South Central LA.

That being said, there are a number of reasons not to invest in C properties in the TK market - primarily because TK investors want to be passive and C (or lower-tier) properties can bring a lot of headache.

If it's C or lower, I'd be more inclined to try to get rid of it (for a variety of reasons incl. lack of appreciation, and the difficulty of managing a C or lower property from OOS).Real estate investing is challenging enough when the property is down the street...it's 10x+ more challenging when it's an OOS property...and it's 100x more challenging if it's an OOS D property.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

Is that worth doing or should he just go to the big market and bet on himself? 

Definitely looking for the C or D multi family in the B neighborhood, but aren't we all.

So if you can figure out a way to send 10000 messages to the number, just a simple A, B, C or D etc.., it will certainly aggravate the wholesaler.    

You're probably right about the 2% increase, I'd bet on it, but it would be a bet.

Neighborhoods that are in transition where improvements are being made and moving from C-/D to C or C+ or good investments as well.