Not much in our experience/opinion.You mentioned that the seller has Class B and C properties.

Start with B-/C+ properties for Cash-flow so you can buy the class A and B properties for apprecation.

@Andrew C. is right.

(C)(1) If the parties dispute the disbursement of the earnest money and the purchase agreement contains the provision described in division (B) of this section, not later than the first day of September following the two year anniversary date of the deposit of the earnest money in the broker's account, the broker shall return the earnest money to the purchaser unless the parties provided the broker with written instructions or a notice of a court action as described in division (B) of this section.(2) If the broker cannot locate the purchaser at the time the disbursement is due, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker shall report the earnest money as unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and remit all of the earnest money to the director.

A window A/C might keep it comfortable, but it often doesn’t meet the standard for counting it as fully finished square footage.

Generally it's a mix between (a) spec builders, the type who specialize in doing in-fill lot's (b) investors, as it is a normalized flip strategy (c) owner occupants, especially in high desire neighborhoods, who are a-ok with taking on the project and even some are excited that they get to build a new home in often old neighborhoods. 

@Phillip Austin we've looked into these and it's our opinion they should only be used with Class A tenants, maybe Class B - deifinitely NOT Class C or D tenants.Several companies in this area will no longer allow S8 leases or tenants under 600 credit scores - because of the high number of claims & corresponding claim amounts.

Is your property in a Class A, B or C neighborhood?

I got in for no money in a C plus community so I made a move.

While on the topic, an S-corp will never save you anything on your rental properties, so don't place rentals into an S-corp.Form a C-corporation.