It is most likely not a money maker and probably in a C- or D class area with very little appreciation on top of it.

I would not bet on it in this market - distressed properties, even the ones at the sheriff sale, seem to be selling at close to ARV. 

Let me use the following single family case study to illustrate: As is the case in most markets, the “C” or “D” tier neighborhoods tend to have the better cash flow on a single family home.

Depending on your investment income look into either a "C" or "S" corp.

-What grade is the neighborhood (if B or higher, I'd lean more to keeping it, if C or lower, I'd lean more toward selling it)-What type of tenants will this property attract, and how much of a headache will it be to manage?

Account Closed I'm not saying don't invest in a C or D area, but I had experience in (1) multi-family deal I did in a C- area and it was a rough process.

On that note, how do you go about classifying properties as A, B, C, or D?  

I have been looking at the MLS and off market deals from a lot of wholesalers almost every day for the past 18mos now and you will mostly find C or D class barely meeting the 1% rule after rehab.

For example, to bet on Detroit you would have to believe that it’s low cost advantage can lead to sustainable growth; that it’s history of disastrous corrupt local government can be corrected; that it’s relatively harsh climate can still attract workers who have the ability to live ANYWHERE, and that it’s unskilled work force will somehow become the “knowledge” workers necessary for city growth.  

Off market properties are closer to on market property prices and aren't the deals they used to be.  Tons