I'd rate it at a B maybe a.

I'm looking for long-term buy and hold properties that I can add value to by increasing rents, reducing vacancy, or renovating to get higher class tenants.Second of all, can people who are familiar with Chicago and all of its neighborhoods give me a brief list of which neighborhoods are A, B or C neighborhoods?

you have 10% for vacancy so it would be in a B- or so neighborhood?

The 100 opening bid was likely a BS amount with the auctioneer aurthorized to credit bid up to 400K on behalf of the bene on the 1st.

I believe I am going to remove the wall for two reasons:1) I think the removal to a more open kitchen/living room plan will add a slight increase to rental value.2) It will greatly increase the resale value if I every choose to sell as everyone wants open floor plans nowadays it seems.A little more reasoning on my choice:The area has great schools (all A/B+ and for all grade levels) and new subdivisions are opening up all around. 

The property was an REO in a B+ neighborhood.

Lets define A, B, and CThere are many definitions floating around attempting to define investment properties.

When I started investing, I focused on assets that would appreciate fast ( SFRentals in class A/B+), with minimal cashflow.

I would A/B test it and try a couple of different types and see which gets the better response. 

Make sure that you make clear that there will be two separate closings, and you will be bringing cash to the A-B Closing, and the end buyer will be bringing their own funds to the B-C Closing.2) If not, you can offer to pay for the title work they've done and ask that both closings happen at the title company of your choosing.