How do class your property?

13 Replies

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?

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+

@will For age do you mean the functionality of the property, mechanials, and layout. For example a home remodeled 2 years ago could fall under the a" class. I ask because in my area no where in the city would I consider a warzone but many houses are 100+ years old. However areas In strong locations have been updated through the years to meet modern expectations.

Originally posted by Kyle Hipp:
@will For age do you mean the functionality of the property, mechanials, and layout. For example a home remodeled 2 years ago could fall under the a" class. I ask because in my area no where in the city would I consider a warzone but many houses are 100+ years old. However areas In strong locations have been updated through the years to meet modern expectations.

Great question Kyle. This is NOT an exact science and some of the variations and "rankings" for lack of a better term are subjective. Typically, it means a building that was built within the last 10 years would have an A-class rating, however, there are the exceptions where you could have a building that was originally built in 1923 but renovated last year, practically rebuilt, and so long as it has all the other attributes of an A class building, it could qualify.

Originally posted by @Will Barnard :
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+

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.

Originally posted by David Lee:
@Will Barnard what is the definition of a war zone?

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.

Originally posted by David Lee:
@Will Barnard what is the definition of a war zone?

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.

Originally posted by @Will Barnard :
Originally posted by David Lee:
@Will Barnard what is the definition of a war zone?

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.

Armoured vehicle also haha

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.

Originally posted by Sam Leon:
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.


hahahaha Imagine that happening haha

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here