@Joseph Gary guessing your Detroit experience was with a Class C property.So, you may want to focus on Class B properties also.

The answer is NO, based on the language of Section 152(c)(3)(A):...an individual meets the requirements of this paragraph if...

@Jeff SkinnerRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Horror story #2: while selling off one of the Class C Indianapolis properties, buyer asked me to pay replace the sewer line before closing... absolutely not...here's a partial credit (check to written out to contractor from closing proceeds so buyers don't pocket the money) 

If we stay with our high-paying jobs, we can carry the properties, but we(spouse and I) are too afraid to invest in Class B or C neighborhoods.

Quote from @Priscilla C.: Quote from @Benjamin Aaker: Since you will be renting it out you should get a conventional loan.

I started the first one in January and going to request C/O next week.

If we leave the limbs then the logs will be B or C quality and 1/2 the price. 

Let’s say your filed of expertise is purchasing c type apartment t complexes and upgrading them to b, then holding to stabilization and once stabilized offering for sale.  

I now have B+, B, B-/C+ and C.