I was trying to build a buyer back-end by calling AJC classified real estate investor ads.

Option 2) Leverage 100K to buy an 8-12 unit apartment building for 400-500K with an average rent 500-600 per month.Never done this before been reading books but no experience dealing with the multi-family classified commercialapartments so my timeline to acquire and build value is unknown.Which do you guys think is the best choices and why?

I wouldn't call that an "A" neighborhood, but it is all so subjective, one has to understand how neighborhoods are classified by the one doing the classifications.

If you have an iPhone you can do it through iTunes by classifying it as an audio book.

Craigslist is the best option to search for potential buyers and sellers in our market.All the local "Penny Saver" advertisement newspapers are dead and the local paper classified section has more Lost Dog ads than real estate ads!

I know we like to classify property like they are commercial properties .. but what are you buying C's Bs and you know some markets Cs are Bs in others and Ds in others.Your spot on with regard to community banks... most have it right in their lending charter they can only loan to those that live and work in the footprint which is usually within 100 miles of the market.PM is the key and bears repeating.. also remote rehab as you stated can be everything from semi rewarding to down right risky to downright wipe out.. this is why turnkey is so popular granted you can garner some delta between cost and turnkey mark up but you have to have the time and ability to do that and its not realistic for beginners or those buying just a few properties.  

I would say upon driving by the property, I would personally classify the property as a "B" - borderline "C" 4- plex.   

You can have vacation homes and even if you never rent them out, the vacation home would not be classified as owner occupied.Is that where you vote from?

Tried using my VA loan to purchase but the VA appraisal came in incredibly low due to having to classify the property as a duplex because the bottom two units were combined and you couldn’t access the top unit unless you went outside and up the stairs.

Price point and the rental rate of a neighborhood are far better ways to classify a neighborhood.