Class A/B areas

[Mark Douglas]

Hello, 

I'm hearing a lot of people mention that they're only interested in buying in Class A or Class B locations.  I think I understand why, I'm just not sure how it's possible to find a good deal in a better than average area.  Wouldn't the price reflect the area the property is in?

I'm looking for MFRs in a fairly competitive market (Nashville, TN) and am running into wall after wall, trying to make a smart buying decision. Properties in the "right" areas are grossly overpriced, many of which still require a good amount of work. The ones I can afford (going FHA, owner-occupant) aren't getting the rents I'd like; not to mention the areas are less desirable.

Any advice on how to acquire a good deal in an overpriced market?  Am I being too picky with the areas I'm looking for?

Thanks a million. 

-Mark