You are then open to r-1 land which in most cases tends to be in nicer neighborhoods.

Depending how much of the neighborhood is a hot zone for renting rather buying, and which Property type is performing better than the other (meaning 1bd 1ba 2 floor renting out faster and much more consistently than a 2bd 1ba 1 floor), you can make your choice of those factors as well as other ones that impact your decision for what you wanna do with your investment.

I changed Grandview and Raytown to be B-/C+ neighborhoods.

Just no guarantee if things get better or worse in your neighborhood.   

I have the details in place, but need to make sure I fit within regulatory and accounting laws.

That’s 3 months of mortgage out of pocket and can make Chas flow negative. im also curious if people have experience doing section 8 in b neighborhoods or just c and d 

No purchasing a property without getting equity, no borrowing to do the EMD, no foreclosure schemes, always full disclosures, only in decent neighborhoods and always recording the deeds.

If you're gonna spend your money in Cleveland on some cheap properties, you'll want to learn the ins and outs of all of the neighborhoods.

It's a small place so I'd guess it won't rent for enough to cover your expenses anyway so I'd probably sell, especially if the loss is small, it unless it's in a great neighborhood that you think will do well over time. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.