What does amp mean I see it a lot on here

11 Replies

I don’t understand some of the terminology that I read on here.

Originally posted by @Willie Page :

I don’t understand some of the terminology that I read on here.

 Maybe Accredited Mortgage Professional (AMP)

@Christopher Phillips However, after acquiring over 1,000 apartment units, I'd rather stick with B&C areas for my apartment buildings and A&B areas for my hotels. So what does the A& mean in this statement

@Willie Page

A,B,C,D... are class ratings for neighborhoods.

A is best. Best appreciation in values. More people own versus those that rent. High number of people wanting to own will push up the property values over time. Parks. Great schools. Various means of commuting (trains, highways). Can also be considered higher in value verus B-E areas. Sometimes it indicates newer construction, but not always. An older area filled with mansions would be an example of where that doesn't fit. Sometimes there are park views, water views and other features. Might be 90% or more people that own vs. those that rent. These areas are hard to get positive cash flow for landlords. The higher valuations make it difficult to cover the mortgage and reserves with the lower rents.

B is a good area, but not as valued as A.

C and D areas will have a higher percentage of people that rent vs. the A areas. Areas that have higher percentage of people that rent will tend to have better cash flow because the need to rent pushes up rents in the area, plus the valuations of the properties are lower compared to the A and B areas.

E and D areas will be predominately rentals. Easy to cash flow, but expect little to no appreciation of property values over time because less people are looking to own.

@Justin Tahilramani - perfect example - Google ampersand if you are still confused 😂

Originally posted by @Justin Tahilramani :

@Christopher Phillips - lol. No - this has to do with the TERRIBLE BP desktop/app interface. Amp = ampersand as in &.

 Lol

Thanks for asking that questions. I had the same doubt.

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