Overall, however, I think that a bet on multi-families is inherently a bet against the American consumer. 

A syndicator that can't cite the exact exemption they are following (such as Rule 506(b) or 506(c) or another state exemption), probably isn't following one and puts the entire investment at risk.

I am in c or b areas and do a lot of screening before I put someone in one of my units.

The debt service obviously impacts your cash flow...but not the cap rate.Example...assuming you have $300k to invest:Property A's NOI is $10k, and it's listed for sale at $100k.Property B's NOI is $20k, and it's listed for sale at $200kProperty C's NOI is $25k, and it is listed for sale at $300kAll things being equal*, would you use your $300k to buy property C? Or

There is no way you can tell an llc or corp they file under C or S, so I send all of them 1099s.

@Andrew Davis  I would look at the reasons its in the condition its in.. many make the statement the previous owner let it go to pot.. that's an easy one... what I have seen if this is C or D class is that they can be almost impossible to keep up and keep rented.. turn over and damage kills the property and you end up in the same boat as the seller is sitting in right now..

This allows me to bet on appreciation without acquiring a potentially toxic asset if prices drop.

Like the other members have said, the 30 to 40K price range is generally C or D neighborhoods.

Private equity might be your best bet on this, but be prepared to show your investors that appraisal and discuss it with them as part of your disclosures.

Potential storage units, area is C but has potential to transition to C+ or perhaps B later on.