There is no precise formula by which properties are placed into classes, but here is a breakdown of the most common classes, A, B and C:Class AThese properties represent the highest quality buildings in their market and area.

The condo association has funds for the owner to complete the rehab and the owner has to option to request draws or take the money and control the rehab themselves. 

Quote from @Lauren Kormylo: The main reason to want direct bookings is to have control over your bookings ........  

The HOA told me they require a sound dampening rating of 67% for upstairs units, and I ended up getting CoreTec ProPlus which has a 57 STC (sound transmission control) rating (I had to call the manufacturer to get that info). 

You can control the investor's ability to exercise the option... placing "not exercisable before" type language in the document.Options are advantageous over JV to avoid partner disagreements. 

FYI - The entire city of Newark is under rent control

(Ask me how I learned that one)With a note/mortgage you have zero liability and it's much easier to sell the note for cash, should you want to in the future, but you give up control/ownership. 

Rent control is another strong factor as many cities have super strict rent control for duplexes and up with Oakland and San Francisco leading the way.

The language on the IRS site is not controlling anything and is usually confusing and sometimes outright wrong. 

They control the votes and what and how things get done.