It's important to understand the difference, and I'd recommend sticking with the REIT with depreciation advantages.The Tax Cut and Jobs Act (TCJA) includes a 199A deduction and applies to certain income from pass-through entities (including REIT dividends) and allows individuals to take the 20% deduction against REIT dividend distributions that yields an effective tax rate of 29.6% or 37% (80% for upper bracket filers).

There are good people who, if they could, would choose to live in Class B neighborhoods, but they can only afford class C....that is your target resident.  

I live in San Francisco and bought a triplex in Cleveland, Ohio in a Class C neighborhood. 

@Scott ChampionRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

It lends an air of class and lasts forever.

I want my GPs to buy their mountain home, fleet of luxury vehicles, and fly first class or private, of course!

That being said, I'm part of an experienced Syndication Group who invests not only in Multifamily, but also different asset classes:  Self Storage, Mobile Home Park, RV Park, and Retail - all to diversify the investment offerings.Reach out, and the next time we have an LP capital raise, I will send you the OM (and obviously info on our company) to review.

Real class. 

Seriously, you will learn more from listening to experts than you will reading 100 books or taking 100 classes.

Quote from @Harry Grewal: Henry I would love to learn more about what to look for in terms of nastiest property have you driven class C self storage?