Neighborhood Grading for Investment

[Joe Zinger]

I see a lot of mentions of neighborhood grading. Things like I only buy in A rated neighborhoods. Are there well defined criteria to classify a neighborhood? Joe

[Ned Carey]

This tends to be a little more defined in the large commercial world. In smaller invstments it is more subjective and relative. One of my mentors used to use a 7 point scale, some use ABC, some ABCDEF, Baltimore City has a map that goes to G, I believe.

My advice is get to know your market. To do that follow the Hundred house rule. Until you have looked at 100 houses you don't know your market. Look at listed propeties, open houses, FSBO, Wholesale deals, at location auctions, other investors properties etc.