Risks of a C class apt complex in DFW
To any experienced apt investors who own or have owned C class properties, how risky do you think such an investment is right now?
Obviously there are lots of variables involved, so assuming one doesn't overpay, manages it well, etc., I'm looking for opinions on the potential problems with buying right now.
Ive spoken with many apartment owners at length, and haven't found one yet that isn't doing extremely well or regrets the investment. I've heard of a few problems, like a chiller going out or occupancy dropping lower and more quickly than expected when getting rid of problem tenants, etc., but they've all gotten through the difficulties and are profitable.
I read an article recently talking about how many big investment firms that have always avoided c class properties are now looking into them, wondering if they're leaving money on the table. Uh oh....