Noticing a pattern lately:Some properties that look overpriced at first actually make more sense after adjusting for realistic rents and PM costs in this area.Examples:• 3-bed units renting faster than 2-beds• C-class neighborhoods showing surprisingly low vacancy• Light value-add increasing rent by $150–$200 with minimal workAnybody else seeing similar patterns in their underwriting?

Some food for thought questions that went through my mind as soon as I read your post:[1]   Are there other C, C+ homes and apartment complexes in the very near area?       

I sold the Class C with a capital loss and am selling the other Class C, both bought in 2023.

Higher than every stress test the office market has lived through in 25 years.The office sector is going through a real correction—finally forced to reckon with remote work, hybrid schedules, aging Class B/C properties, and loans written on 2019 assumptions.

I am a Capital Raiser for B and C class, value add, Multifamily Properties, ideally 20+ doors.

In my market class c- areas have appreciation that exceeds most markets class A areas.  

Setting up a new LLC for each flipping project is a common approach to limit liability, but as you mentioned, it can get tricky with all the bank accounts and bookkeeping.One option to simplify things is to set up a holding company (LLC or C-Corp) to own the individual LLCs for each project.

Get two other quotes from different A/C companies.

Class A, B, C or D?

IRC 469(c)(7)(B) and Publication 925 back this up, stating that the active participation of just one spouse can turn the entire rental activity non-passive.It sounds like your CPA may have misunderstood this rule.