So you get an expense on Schedule C or E, but then you get wages to declare for the same amount!

I have seen them go from under $1,000 to well over for a C+ or B+ property. 

My wife and I are currently looking at few markets and I am wondering what are some of the methods determining the areas of a market that are A, B, C, or D areas?

I'd bet on the former!

@Lisa WinklepleckAccording to IRS instruction's, no need to issue 1099 if LLC is treated as a C or S corporation. 

Street comps are going to be the best bet on real idea of what the actual value  for the property is.

Yes, some people who bet on appreciation  loss their shirt in 2008.

How long do you plan to live there, can you 'put up with' a C or D neighborhood for a year?

Because we are an s-corporation...which depending on your needs and situation would be the deciding factor of c or s corporation.... we can write off all our deductions and then the final number is what we would be tax on.

The B asset class is what I would prefer, but I am also interested in C or even doing a BRRR on a C class to bring it to a B.