Pick a solid B-Class suburban area.

Greater than 4 housing units in a building classes it as commercial.Building codes are usually controlled at a county level and vary across our country.

Is the property in an area where you understand the class of tenants and what they need to keep your property paying its bills? 

These older class C deals sort of are-what-they-are. 

At that price in my market that's a C-, D class neighborhood.

Higher turn over ratio than expected with class D level properties.

And the 1031 exchange is one way of doing that by letting you position your portfolio in location, class, property sector, and price to sustain a correction.Here's another way of looking at it. 

this is def the asset class I'd like to start in!

That's crazy, your PMC must be a Class A company employing engineers to paint and doctors to clean!!!!

Without going into too much detail, the syndicator listed it like this (two options):--Class A income investors: 10% Preferred return / CoC (no upside)--Class B growth investors 7% pref; 8.2% CoC; 20% AAR; 16.5 IRR(5 year hold target)