One of the standard setup is to have each property in its own single member LLC in the state of the property.The property LLCs are then owned by a holding LLC in WY or NV to benefit from their good charging order protection.In addition, you would use a C corp as management corporation to take salary (if needed to show steady income for future loan approval), retierement, medical and other fringe benefit.

The fringes were somewhat sketchy in the 80s and 90s, but they fixed up the downtown in the 90s, but nothing much happened until the movie theater went in downtown in the early 2000's, then people started coming downtown and more restaurants opened and it got trendier.Even at the most recent bottom in 2012 it seemed expensive, but it's doubled since... it's been pretty crazy lately, teardowns everywhere, we just counted 8 in our neighborhood.

I know CLT well having lived there and think I could identify a property "on the fringe" and to light rehab, and then rent for good cash flow. 

Investors are willing to go out on the fringes for cash flow.

I may have misread this article https://www.bna.com/new-calculations-unrelated-b73014473901/andhttps://www.cupahr.org/5-changes-to-unrelated-business-income-tax-and-fringe-benefits-rules-under-the-new-tax-law/

I had a 16 unit on Greenville Blvd SW under contract a year ago, on the fringe of that area.

As far as the tax benefits and investing, it shouldn't be the deciding factor of an investment, but it is a fringe benefit.

My advice, if you don't have a lot of experience stay away from D class, and really avoid C class unless you think it is on the fringe of a B area and progress is headed that way.

You can get rid of condition issues in a couple weeks, but you will probably never get rid of a 90 minute travel time.Unfortunately my market is pretty ridiculous right now, so any "local" stuff I'm doing is really out on the fringe. 

The upside is if you do an FHA loan, you don't need a ton of money for a multi-unit.Also, look on the fringes of good areas.