@Manolo D. yes, that is how the bank's contract is, but my contract is clearly NOT cost plus with maximum price guarantee.

I am always overwhelmed at the knowledge that pours out in these threads from generous people with tons of experience.William D and Steve Babiak: Thank you for the link reference to ffiec.gov.

, but very difficult to DIY remote manage.11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week.

A safe B/A property would be best for a noobie over a C/D w coc of 10%.  

@Louis Dobrik  There's a lot of information missing from this question, Are you talking about One 300 unit B Class commercial property, or 300 single Class C- or D properties in the Midwest?

RE is always local and I'm sure there are Class C, D areas that can hit this, but not even close in my market. 

@James D Brown,  the locale neighborhood did affect my decision. 

Besides a drug test will show they are clean today but that doesn't mean they'll be clean two weeks from now when they've finally settled into the home and an invite their friends over.I manage 300 rentals and some of them have been D or C class but I don't worry about druggies.

Always happy to hear folks like what they see when they come to Birmingham - the city really has undergone such a transformation over the past few years, and we're just getting started! 

To avoid licensing, you will be operating within Reg D 506(b) or (c) exemptions.