I'm an out of state investor looking for a SF, condo or townhouse, 2-3 bed, 2 bath, buy and hold 15-20 minutes from a good beach in a B or better area. 

I'm look for a 5 - 10 unit multifamily in a B or C+ neighborhood, that attract a good pool of tenants. 

@Chris TaylorHere's the reason you should consider having full replacement cost coverage:Let's say I have a property in a decent area, but just the lot itself is not highly marketable (very often the case in a B/C neighborhood). 

In Chicago you can hit .07-.08 in A/B and .09-1% in the C class areas,and over 1% in the C-/D class areas. 

But you'll know right away if something is being listed as a B but is actually a C or D ( I have seen folks listing props in C+ areas here in Bham as being A-, and someone from another market wouldn't know the difference without looking).

If it's in a B or higher area, it is worth looking into it, because you usually make money buying the 'worst' property in the 'best' neighborhood.If this C property is located in a C or lower area, I'd pass. 

For your first purchase, I would look for a 2-4 door asset that is underperforming with some value-add potential within a B/B- market.

I have A, B & C properties in different parts of the city.  

For example, if you said that that it is a B building in an A or B area, I would probably buy it.

Net Worth Statement                                                     Fair Market ValueCash                                                                                       $10,000Investments                                                                          $20,000Real Estate(original purchase of 95,000)                         $145,000Total Assets                                                                          $175,000Liabilities  Mortgage                                                                                $108,750Equity Equity                                                                                         $66,250if you are trying to do an income statementStatement of income & expendituresGross rent(A)                                                                               $10,000Expenses(B)                                                                                 $5,000Taxable income (A-B)                                                                 $5000Unrealized gain on assets(C)                                                    $5,000Book Income A-B+C                                                                    $10,000looks simple and easy to read/understand