I've heard some have had more success in the areas that are more C or D, but I'm with you in that I would prefer to stay in the more desirable areas for my investments. 

But what i meant was more where can i purchase a 40k home to buy and hold or flip in a grade C or higher neighborhood.

You could be selling a used car with their skill set.It's like someone placing a bet on a game and thinking they're an athlete.

Sending a Class A handyman to a Class C or D property will waste your money.

I'm confident we can complete the expungement after closing if needed, but it's certainly not something we're going to make a 617k bet on.

I do not bet on appreciation or invest on the hope that cash flow will one day be positive or the hope that an area will develop around the subject property. 

I think it is better to buy a lower priced home in a C or B class neighborhood and make a better return. 

The short term cash flow probably will not look very good even if ~50% downpay is commonly required now for commercial residential loan.As to why I choose north Seattle, I bet on long term property appreciation and probably get less tenant issues down the road.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

Don't bet on appreciation here but you can guarantee it EASILY cash flows better than all of the west cost and east coast without a doubt!!