Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Mechanicals, roofs etc. can be towards the end of their useful life and pass inspection but then the cap ex can't be absorbed in many of these C/D neighborhoods.

Only the house 5 down with the same sq ft is literally worth 100K more because the neighborhood actually changes in those 5 houses. 

I've personally driven this neighborhood and was amazed at how nice and clean it is.

The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) could also be a great strategy to recycle your capital.To find deals, try direct mail campaigns targeting absentee owners or distressed properties, or go driving for dollars in neighborhoods with strong rental potential.

I'm speaking of co-living in a typical A or B level neighborhood house, so instead of a 20-25% down payment, we are speaking of a 1-5% down payment. 

The other is a smaller operation which does a lot of business in the specific neighborhood the house is in.  

I found a house that I like to purchase in a great neighborhood and the exterior looks great for a 1922 stick built house.

You can still find single-family homes in the $80k–$100k range and duplexes in the $130k–$150k range, even in C and C+ neighborhoods that are seeing steady improvements.

Going more west and south especially after 42nd st really changes the neighborhood.