I think you best bet on a smaller sized multi-family in this case is to allow tenants to connect their own washer/dryer for a fee or just charge slightly more rent for the convenience rather than buy coin-op machines. 

The only reason I want to leverage more is so I can afford to buy in B neighborhood instead of a C or D, would you agree that make sense?

If it's C- or below, you may spend a lot of time on management and more money on repairs.What are the comps like?

There should be tons of flooded houses to buy soon. 

This all about what grade are you willing to bet on ,B ,C homes?

Go to vegas and bet on black. ;)

New Pro member in Phoenix, AZ.  Just filed personal tax return for 2017.  LLC holding our first 4 plex was filed a while back.  I was surprised to find that depreciation was not deductible and loss was not reported as...

You need to understand local markets on where are the C or B or A areas through a lot research. 

While the 1% rule is a great General guideline, what really applies in an area such as St Louis, which is predominantly a Class C or worse area for cash flowing rentals it's something known as churn.

@Bhuja Parikh Unless you work with a wholesaler to find you a property in some sort of a distress and be able to acquire it at a substantial discount, you'll have a hard time finding anything close to a decent property (maybe in a C or D area?)