This helps lower your holding costs and results in better returns at the end of the day

I am planning on buying and holding for the long haul.

I will likely buy with cash and not hold a mortgage. 

Investment Info:Single-family residence buy & hold investment.

I'd also caution you against using 100% financing for a long term buy-and-hold property. 

You can leverage your HELOC and cash to cover the down payment, the initial rehab draws, and holding costs. 

I'm deciding how long I should hold onto those properties and if the Class C will appreciate enough.

I probably wouldn’t mention your third point - it makes it sound like you expect them to hold this note forever and I’m not very certain, but I’m guessing there isn’t a huge market for $100k secondary notes.Have you considered asking them to finance 90-100% for a short period of time so you can rehab and refi at a higher valuation?

Investment Info:Condo buy & hold investment.

However, I expect for along hold, it will outperform virtually all other markets.