There is definte risk to consider if you're purchasing property with your bet on the park.

I want to try and make some quick cash with AIG, C, or BAC.and yea $500 doesn't get much after transaction fees.

I don't want to be in a position where, if I would have asked, people could have said "Yea, you're obviously not quite ready, you should have done A,B,C, or learned X,Y,Z".

When rents in your C or B class multi stop rising .Its a signal not noise. 

In fact, I never advise people to invest out of state, but with that kind of money, you might find A or B-grade stuff outside of CA that would return a lot more, and that would be of such quality that you would not have the usual C or D-grade OOS problems with it. 

Assuming this is a C or D area based on cost of this multi.3) Quality of tenant and the issues that come with those types of tenants.

Additionally VA and FHA loans probably won't pay for new construction.What you should do, is find a C+ or B- class duplex or quadplex, live in one part of it and rent out the other units.

You sir, have never owned or worked in the Class C or the ghetto.You are dismissed

Victor, to take depreciation to I need to file taxes on a Schedule C or LLC corp or partnership?

If however you do not limit yourself by being short sighted, and look at the big picture over the course of multiple decades I will bet on appreciation all day long because I am confident on a positive inflation rate over the course of those same decades.