Now of course there could be tons of hidden issues but I feel like if you can get the property at a deep enough discount, you should be covered for the most part.

***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?

You want it to appraise for a really high value, but that's going to jam you if the only tenants willing to live in that area are C or D.

If you are buying all cash the properties will "cash flow" technically, but your returns will not be very high (about .75% would be your best bet on turn key rent ratios) .

***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?

Just takes more effort than the buy something with 20 or 25% down using conventional financing and cashflow day one unless you are in C or D class.With the Macro economics long term holds look really good from most angles.

I'd imagine that it could certainly work, but I wouldn't bet on it.

California and Boston are expensive but in 5-10 years would you rather have a few nice properties with B tenants in or outside of Boston or SF on your balance sheet or like 10 duplexes worth 70K each in the midwest with C or D tenants? 

So, what makes the most sense – a, b, or c? Or

We'll normally start with the last 2 years of your tax returns and look at the deductions on your schedule C or, if you file a separate return for your entity, then we'll want the 1120-S on that for those 2 years as well.