Here in certain areas of the Bay Area, I don't really consider it speculation to bet on appreciation in the long term, though you might have to hold through possible recessions to benefit from it.

But it is not something I would bet on.

I wondered about this myself,in one county something is a B or b-or b+ and cross into another and they see it as an A -or C or C+and I can't see the differencethe houses and neighborhoods seem alike

The locals may be prone to tearing your building apart too and thus your expenses may be much higher than you think in C or D-type neighborhoods.Be careful with using the rule of thumb as the end-all-be-all that it is hyped up to be on the forums.

If it's a cash buyer it doesn't matter but you would sell it for less because the items aren't completed.So spending a couple of hundred dollars will help you sell your investment to a larger pool of buyers.Maybe adding A/C or redoing the the kitchen and bathroom might cost you 5 -15K but if you can sell the house for 30-45k more after repairs it's a great investment. 

Consider appreciation as a bonus and never bet on it.Houston is getting hard to find deal now. you are not alone. keep looking and you will find oneGood luck

I will echo what some of the others have said with getting a firm grip on capex and the market trends.Here are some other things I would like to know before making a call on it:What type of area is this A, B C or worse? 

Federal HST hollow points or Cor-bon would make good defensive loads for carry.Good luck!

Sometimes we have a repair for the A/C or heat, but not much.Hope this helps

I know it's tempting to buy into a sub-$50k C or D prop because it fits your budget, but I'd really recommend holding off until you have more capital and can invest in a lower-risk product.