***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?

***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?

If you're going to bet on appreciation then you'll also need to include how much you think the properties may appreciate over the years.

***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?

Well located class or A or B locations as well as Class C or B properties in these locations is really selling fast. 

Ths market, as you know, it is not a cash flow market, but you can generally bet on appreciation, annual rent increases, and a pool of great tenants. 

Yes there were some short term market corrections in there, but on average prices have doubled every 10-15 years, depending on specific location, fairly consistently going back 40+ years.BP is dominated by cash flow only type investors, which is understandable since most markets across the country do not experience appreciation above and beyond inflation on a regular and sustained basis, and many even have negative appreciation rates after factoring inflation ... so, for folks in those markets to bet on appreciation would be a mistake, but they still should not ignore the long term historic appreciation rates IMO because they can also be negative.

Now, you are asking about the lender...and not your deal...there will certainly be TONS of questions about the sufficiency of such a rental property. 

If you are an C or S Corp, you can bet the eyes of the IRS will be watching you like a hawk.  

Or the property is owned by a corporate entity such as a C or S corp or registered partnership.