D 506(c) or 506(b) for what you're trying to do.  

So, don't bet on hiding in some private deal.Experience alone is not something to rely on as things have changed so much that what you did 10 years ago could very well be illegal now, most deals that flew and were done 20 years and more certainly won't fly today without reviewing new compliance issues and most just won't work.I'd bet we have other current or past financial regulators here on BP as well, I know we had another FDIC Examiner but he has not posted for awhile.

There are a million good-looking deals out there, but if I have to wonder whether me or someone working on my behalf may get hurt while at the property, I don't want any part of it.Beyond that, areas that are either proven stable (low B or C) or are turning around (as proven to me by actual renovation of homes or new construction).

Most likely you are not going to do this with a class A building in a nice part of town, it will be a class C or D on the wrong side of the tracks...I have done these deals and solved the problems.

The median home price in SF is well north of $1M which means that any property you are purchasing at $1M is a class C or lower neighborhood and this is SFH.

Sorry, a follow up to my question :)Sharon, in your case where you are allowed to fund A-B with B-C, the B-C is signed first, but it wouldn't be that way with A-B (transactional funding) then B-C, or would it?

These are not tenants from a C or D neighborhood.

Some of the markets they propose are C or declining in pop.

There sometimes feels like the cultural dynamism is lacking but I would have the hunch it'd be a solid bet on its long term outlook. 

They're going to be either really expensive, or super run down in a C or worst neighborhood.