I'll be sure to narrow down my target market to something very specific.

(e.g. you could income strip from Sch C to Sch B and avoid SE taxes) Effectively you'd be loaning yourself money (i.e. from one pocket to the other).Bonus points for authoritative citation.

I've narrowed it down to 2 states PA and TX.

I've seen way to many multi family properties just get into that death spiral of a slum lord and horrible tenants and it's just one band aid after another until finally the owner extracts whatever they can and exits.I personally would want to be buying something at a little lower price, perhaps redeveloping, etc.Build value rather than extract value.If the assumptions above mentioned check out and you're happy with those returns I don't see a major hurdle ----  big however though is that you're only outperforming your cost of capital by maybe a percentage point?

I would have the general area as C but specific areas range from D+ to B- and our particular units in that area are C to C+. 

That will really narrow or open up your options.

@Ryan ChampinI think you first need to narrow down your market to specific area(s).

They put a band-aide on the house doing as little as possible to improve the property before they resell it for the average comp.

They put a band-aide on the house doing as little as possible to improve the property before they resell it for the average comp.

They put a band-aide on the house doing as little as possible to improve the property before they resell it for the average comp.