Question: Would this property be located in a C (or lower) neighborhood?  

I hear all the time "you can't bet on appreciation."

C) Or, do you just keep the door, still keep it as one unit, but basically separate your renters' and your space with a lock?

Ken - I haven't hired those guys but I'd argue a couple things: 1) Too many attorneys in the REI space $ell fear that you need this or that structure in order to protect your assets.2) Too many investors get scared off by what appears to be something complex -- forming a holding company (whether LLC, LLP, C or S-corp).

Regarding appreciation, it is always icing on the cake but you should never bet on it.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

@Maryam Mostafa chasing a 12% Cap will require:1) High risk properties Class C or D2) Getting lucky and getting the property under market value3) Doing a LOT of hard work to find an owner willing to sell under market value4) Doing the above to find and reposition a poorly managed propertyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

The only time we take a bet on a property with negative cash flow is if we have a way to force up the rents or we can force appreciation through improving the property.  

If I had at least a 10 year timeline, I would personally bet on more appreciation for Pueblo West than Colorado Springs.

Eventually it all comes back, its a matter if you want to pay the bank or pay yourself- both hurt in their own ways but we bet on ourselves every time.I can say a great way is to share your specific property when you are ready and there are a lot of great advice on what a good property can do.In any case, good luck, hopefully you execute a plan!