I did it with 12 new constructions I had in MS... however my renters were not C or even B class they were managerial in most instances or very well established building a new 500 to 1mil dollar home and needed a place to rent for a year while the home was under construction.that type of thing.even with that I had one totally trash one of my new homes to the tune of 35k damage.. it happens.I did get some insurance out and I subragated to them and they filed criminal charges against out tenant but I bet I still lost 10k or so in that exchange..

Right now the problem Im coming up against is that I don't know if the neighborhoods Im looking in are any good, a.k.a. are they A,B,C or D neighborhoods.  

Have you figured in maintenance costs on a new a/c or roof.

Do I file schedule c or 1120s?

***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?

C or B class areas between 1000 to 2000 sqft.and if it is not gutted than it is better, but I think I can handle with a gutted house also. 

A property that has been bought, rehabbed, marketed and then sold to an investor for $50k or less is a C or D class prop, bottom line.

Ann - Assuming you are considering rental properties, I think you can be sure you don't want to use a corporation (either C or S designation) as there are problems getting properties out of these.But, my CPA (who used to work for the IRS) advised me to just hold my rental properties personally - no entity of any kind.  

Lending club or prosper probably the best bet on an amount that low

I want to live pretty much anywhere that's a C or B neighborhood.