anyone know where you could find what the national average cap rate for class a, b and c? or

The only way to make this work (possibly) is to bet on future appreciation, but I'm not interested in speculating.I was thinking about looking for deals out of state, but it won't be a place I can live in, so I miss out on being able to tax-deduct interest payments on the primary residence and other such perks.What do you guys think I should be looking into?

If their schedule E is bare bones then figure your own and double or triple it because there will be tons of deferred maintenance.

I can deal with some work, but not a whole ton, so prob not strictly speaking C or D class propertiesThoughts? 

Are you talking about class C or war zone?

It depends on your parameters.With that being said, you may not mind doing work or living in a C or D class area so that really depends on you individually.

In that case, you are just asking them to make a bet on appreciation of the unit while you are waiting to sell.  

But for anybody to suggest they believe there is going to be tons of appreciation in detroit and is willing to risk a bunch money there, thats just foolish.  

Our best bet on these has been getting loans from community banks.

My personal opinion is that you can make terrific money in C- or D neighborhoods, but you need to be seasoned and most likely local.