Sounds like they've been around awhile and have their "old-school" way of doing things and may be a bit behind the times with technology and standards.Overall, they seem to be treating your property like a Class C rental.- What do you feel the Class is?

Remove those and the Net S8 Rent will be market rent.Typically, the only way to get more than market rent is by buying in Class D areas and hoping a S8 tenant will live there instead of a Class C area.Keep in Mind: TENANTS QUALIFY FOR SECTION 8 FOR A REASON!

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

That’s what the schedule C is for. 

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

C market and below sfr flips may look sexy on paper when you look at market rent and lower costs and turnkey etc etc, but they introduce many pitfalls, particularly in KCMO C class proper, where troublesome tenants can acquire city funded attorneys to drag out evictions.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

When we started slowly one house per year or more we just paid a capital gains tax in a single member LLC, but now we are much busier and switching to C-corp LLC and Just wondering how flippers are structuring each job?  

I think the mid to low C area is a real danger zone, with risky tenants and shaky housing value and rent increases.

If you apply Class A assumptions to a Class C or D property - disaster!