Even then, A/B won't typically work.  3. 

The existing system is pretty old cast iron except some ABS pipe towards the front of the property before going into the street.

I just helped a client purchase a duplex for $330k in a B class neighbourhood that will rent for around $2800 and cashflow around $500/month with some conservative estimates for maintenance.

You are probably going to need to find a B class area to make the numbers work. 

Everything I own now is in Class A/B areas and I haven't had any S8 tenants apply for any of those units.  

I’ve gotten other opinions that it was a B-, c+ area. 

Agreed, I have some rentals in a B area and have friends with them in C areas and its night and day (talking 2-3 miles difference here in locations) in amount of applicants and quality of tenants. 

@Mark WalkerCap rates vary by asset class (A, B, C, D), condition, and vintage of the asset and the market, to name a few things. 

Do you and your partner have the same idea about what a B class area or a C class area looks like?

I am left with 2 ABS Loans, Tenant occupied property that is now in foreclosure, because since November of last year I was trying to refinance, but the loan officer I was working with made me believe that he can refinance at least one of them, resulted in a failure to get approved.