@Diane Stinebaugh - I dont think its one size fits all type of an answer because imo it dependsA few things to take into consideration would be -- age of the house and how much deferred maintenace it has- Is it A/B/C or lower class type of an asset- Geographical location and possibility of natural disasters like hurricanes, tornadoes, hailstorms, earthquakes etc.

I stay away from D areas, but if I did do it, there are ones 10 miles from us (Compton, Watts) that are definitely transitioning into C or even C+ areas, with money to be made on appreciation and a bump in rent.

Bet on black. 

If I start selling Turnkeys within my LLC, that is, buying a property, fixing it up and selling it within a couple of months to an investor, is it Schedule C or is it Schedule E?

I'm not willing to buy anything in a C or D area, so if an out-of-town investor is, more power to them.

You definitely do NOT want a C or S Corp.  

Before I go for a visit, Are there some areas-zip codes, C  or B neighborhoods you  recommend for SFH? 

It could be business income (Sch C) or short-term capital gain (Form 4797), depending on your involvement and your other business activities.

The description of "GOODMANS ADDN PB A-21 1/2 LOT 16 BK C OR 2017/2467 & OR 2414/1795" indicates this is a half lot.

@Leon Kanon I would not personally call Englewood and Back in the Yards "solid C+ or B areas.