This property would classify as commercial, as it is more than four units (1-4 residential, 5+ commercial).

Typically if the average rental time is 7 days or under it gets classified as active and moves to Schedule C (like any other business subject to SE tax) and is no longer reported on Sch E (like a rental)

What classifies a C, B, A, etc neighborhood?

One way to view this is the Standard Industry Clasification system (SIC) as described hereBuy&Hold (like myself) would be 65136500 Real Estate6510 Real Estate Operators (No Developers) & Lessors6512 Operators of Nonresidential Buildings6513 Operators of Apartment Buildings6519 Lessors of Real Property, NEC6531 Real Estate Agents & Managers (For Others)6532 Real Estate Dealers (For Their Own Account)6552 Land Subdividers & Developers (No Cemeteries)

Basically, it was nutso double digit appreciation in 2012 and 13, and this year is only (sic) 5-7%.

These suburbs are what I classify as C and B- areas.

If the gains in the LLC were to be classified as short term (for whatever reason), would I still be able to negate some of those gains with the short and long term losses I'm carrying over from previous years tax returns?   

I have a rental in cedar hills and would classify the neighborhood as a C class area.

After visiting the property and talking with two of the tenants I would probably classify the property as being "C" or just very low income area.

UPDATE, I was looking in the local classified ads and saw the property listed at a reduced price 157,000.