They were Class C and D, which take a LOT of time to stay on top the tenants.Padsplit does this, but only with Class A properties & corresponding tenants.Also, be aware YOU will have to supply kitchen, living room, laundry and other common area furniture and such. 

Each of these markets has A/B/C pockets that perform very differently.

This is NOT being marketed as subdivided — just something I explored:The city indicated that the lot appears to meet current criteria for potential subdivision (R-1-C zoning, corner lot, frontage & depth meet requirements).No promises made — but it was interesting to learn that a majority of nearby lots don’t qualify, and this one might.Question to the group:For experienced investors/developers — would “existing home w/ potential for income during entitlement phase” be seen as added value?

IRC 469(c)(7)(B) and Publication 925 back this up, stating that the active participation of just one spouse can turn the entire rental activity non-passive.It sounds like your CPA may have misunderstood this rule.

Some food for thought questions that went through my mind as soon as I read your post:[1]   Are there other C, C+ homes and apartment complexes in the very near area?       

Thanks @Allan C.

In a C class, high CF market, I'm looking for 1.1 to 1.3% rent to price ratio in my Midwest markets.

Too many newbies focus on hype not facts:(New client that just bought 3 Class C-minus properties in Detroit. 

One of my early mentors said to me "the three most important things in lending are ability, ability, and ability" (so, basically "capacity" in "the three c's of lending".

C market and below sfr flips may look sexy on paper when you look at market rent and lower costs and turnkey etc etc, but they introduce many pitfalls, particularly in KCMO C class proper, where troublesome tenants can acquire city funded attorneys to drag out evictions.