How do class your property?

Question

I have seen several different post saying that their property was a B class or was a C class. My question is what are these classes and how are they determined?

Steve Babiak · Answer

A number of other BP threads cover this topic:

http://www.biggerpockets.com/forums/12/topics/74003-2-rule-wont-work-in-my-market---now-what?page=1#p429317

http://www.biggerpockets.com/forums/311/topics/79967-a-b-c-d-property-ranges

http://www.biggerpockets.com/forums/52/topics/92396-how-to-classify-a-neighborhood

http://www.biggerpockets.com/forums/432/topics/89731-guidelines-to-help-determine-property-grade---a-b-c-or-d

http://www.biggerpockets.com/forums/52/topics/78359-all-of-my-fancy-renovations-payed-off-but-one-in-particular-sealed-it?page=1#p465319

http://www.biggerpockets.com/forums/48/topics/72884-clasisfication-of-class-a-b-c-d-mfh-and-apartments

Will Barnard · Answer

The factors are amenities, age, condition, unit mixes, and location.

Will Barnard · Answer

A Class = Most amenities, newer building, usually 10 years or newer, great area, top rents.

B Class = Good amenities, approx. 20 years old or less, good area.

C Class = Little amenities, older buildings, usually 30 years old or so, not a good area (but not war zone)

D Class = No amenities, old building, usually with deferred maintenance, bad area (likely war zone)

Then you have all the in between like B- or C+

Sam Leon · Answer

Age is a tricky factor.

We have several areas down here where the homes are old (1930s to 1950s) and are in "historic districts" and are very popular and obtain top rent, yet they are rarely remodeled and if done often minimalistically and the neighborhoods are generally against new, modern upgrades, especially those "monster mansions".

Also these properties are in very non-homogeneous neighborhoods, they are VERY NICE, some along water with sailboats etc...but they could be only 1 or 2 blocks from war zones. One has to drive through war zones to get to them. You pray your car doesn't break down 3 blocks away LOL.

Will Barnard · Answer

10-4 to that!

Engelo Rumora · Answer

Armoured vehicle also haha

Will Barnard · Answer

LoL. You will know when you walk into one. It is an area where you feel the need to be packing (a gun) and wearing a bullet proof vest. Bangers are hanging, properties are in poor condition, and you would not want to be caught in the area at night. Police are there pretty much every day, etc.

Engelo Rumora · Answer

lollol

Many dilapidated buildings with shady people walking around. News channels broadcasting shootings in the area most evenings, etc...

You will definitely be able to see when your are in a "war zone" area.

Thanks.

Engelo Rumora · Answer

Thanks @Will Barnard

I like your layout.

We do have 50 -60 year old SFH here in Kansas City that I would consider B class.

Thanks and have a great day.

How do class your property?

How do class your property?

Most Popular Reply

13 Replies