How would one classify Class A versus B/C ? 

Currently, I believe the LLC is classified as a sole proprietorship/disregarded entity.

They'll be able to give you more details on what is classified as Zone B as well. 

I'm ready to invest another $50k or so and was considering investing out of state, small multifamilies in less desirable areas near me, or to continue investing in my comfort area.About the target property: I would classify it as an A or A- area based on what a lot of people call B and C areas around Chicago.

@James Fonteno You are thinking about a stabilized multifamily which is classified as a yield play.

Make sure transfer information is correct and not at last minute changed to different instructions.http://www.chicagotribune.com/classified/realestat...What city did you settle on? 

It depends on what you classify as good ROI and what price point you want to purchase in. 

The city zoning has the home listed as single family, but the previous owner added in a second meter for the basement it looks like.It would be advantageous for me to have it appraised and classified as single family since it will me a lower down payment, but the lender has indicated he thinks the appraiser will say it’s multi since the basement has a kitchen.I’m unfamiliar with the specifics on this situation.

He has told me that two good ways are to put a classified ad in the paper (and/or craigslist) and say "Rent to own, low downpayment" or "no bank qualifying, rent to own" or something like that.

Post it in the classified section, and follow the rules for that forum.