From my view, investing in a multi-family in a C/D (or seedy, if you prefer) area is kind of missing the point.

New homes are usually insulated to R-38 for attics, we will do R-50. 

A "D" in another region might be an inner city 'hood with a majority blue collar population.If you grew up in a D or F your perception of what is truly bad is going to be different than the perception of the private school lacrosse kids.

Rehabbers usually succeed in areas that are"A" or "B" but they have a hard time moving properties in C, D or F areas.

Jay, I haven't got into it yet, but Cleveland IS an area where greater than 2%/m is quite do-able - depending of course on risk tolerance for perceived C, D, or F neighborhoods.

You are the one signing in all three places, so if you are cool with it.....I myself would be concerned about the SC DOR putting two and two together and recognizing that a homestead exemption is being claimed on a home that is being rented/depreciated.

@Olivia C.  6% is less than I pay my commercial bank for A and D or construction I pay 1 point and 5.5% and I borrow at the best rates available.. anyone getting funds cheaper than me is getting them from ONLY family who is subsidizing a relative or frankly someone who does not know any better ( you) and I don't mean this as condescending its just a fact... 

Set Up a Separate Bank Account for the LLC Again, this isn't required, but is probably a good idea.Don't forget registering with your state DOR and DOL, and then paying all taxes when necessary.

If you're willing to tolerate higher risk in a D or E area then you might set your minimum at 10%.

Account ClosedWelcome to the site.With the current market conditions 30k in Cleveland will get you a duplex in a D or F neighborhood.