You can invest in class D areas that on paper will show a high IRR of 20% but I would not touch it with a ten foot pole, but in same breath I would consider a 10% IRR where there is no leverage and low investment to value.If the class(a,b,c,) of an apartment building is based on the year it was built than what specifically determines the class of the area?

This is more a B- class neighborhood.I plan on doing a remodel of the kitchen including new countertops, range and hood, refrigerator, microwave, dishwasher; the cabinets are actually in solid shape and hardwood so I would like to keep them, but they definitely need to be stained and will also be adding hardware on them.

The property was sold for $64,900 in a B class area (43612) of Toledo.

From a rental standpoint though, that area and Gilbert are the main A-B+ suburb of AZ, so cash flow might not be as strong as you might want in a multifamily.

I do want to get out of this C class house and invest the profit into a B or B+ home. 

I have rentals in BC (and AB-which is quite different). 

Thanks Stuart.I don't think a "thesis" is necessary for real estate investing.Your mixing "thesis" with speculation and prediction IMO$1m in cash is retirement for someone that knows what they are doing in "low barrier" markets like you mention.Same can't be said for higher entry markets.Those that don't know real estate will loose no matter where or how they invest.Personally, I don't care about appreciation as I don't get out of bed unless I can net cashflow 20% net on a deal.For example, just bought a 6 unit in a B class area for $160,000.Currently occupied and renting for $3,000pm.Once minor rehab of $50,000 is completed, rents will be $4,500.I have an offer to sell as is for $250,000.ARV is $350,000.When interest rates go down, value will increase even further due to commercial lending being easier.No need for appreciation on such deals.I'll take them all day long over any appreciation potential.Again, just my opinion and each to their own.

Its important to know that the property can be A, B, C or D and so can the location.

The first time you hear it , it sounds great , when you hear it 80 times , its a BS  sales pitch .

Fairborn, which is maybe a B or a C class neighborhood, is home to Wright Patterson Air Force Base so lots of potential for military families and single Airmen/Guardians moving off base.