You don't get the same protection compared to a B to C transaction from Uncle Sam.2) Syndication has its positives and negatives.

This is why we are almost exclusively a B/B+ turnkey operator, it is very difficult to find the kind of deals in A areas that leave enough margin for instant equity to compensate for the reduced cash flow (due to high loan payments, high property taxes, etc).

The price will differ from what class the property is (A,B,C,D...) and what other properties within that area have sold for.

This also explains why publically traded Reits into SFRs only invest in A,B areas and not C, D areas generally.

I don't believe you are going to get a 10% cap rate for a B property just about anywhere in the county.

Are you buying in A, B, or C neighbhorhood.  

I understand how transactional financing works with the whole AB closing and the BC closing with the wholesaler/investor being the "B".

The next time you apply for a mortgage (same lender or different lender, makes no difference), underwriting is going to look at the file and apply a "BS Test" to see if it looks like you did indeed live there for that year you promised to. 

It was a C-class property and had lots of deferred maintenance, but over time these got worked out and it was just sold as a B-class with more than 200% appreciation.We bought well and required a positive cash flow on day-1 (ie the break even point was 70% occupancy). 

Finding a b,c property where you can value add would be a good strategy.