Anyone Buying Class-A Single Family Homes?

[Andrew Neal]

I'm just curious as to who in here is buying more of the Class-A type single family rentals? After listening to the Tim Shiner episode it got me thinking. 

A lot of people talk of buying the 30-50K home in Memphis or wherever but what about a great Class-A neighborhood with a great school district etc. ? How do your numbers look? Are you playing the appreciation game or are you also seeing cashflow?

[Russell Brazil]

My favorite assets in my portfolio are my A/B class single family rentals in the DC suburbs. Purchase prices in the $400-$500k range and rents in the $2500-$3000 range. Rents go up about $100 per month each year and value goes up about $20-$25k per year.  High quality tenants generally.  Usually break even on purchase, but with patience they cash flow more with the rent growth than my cash flow properties. I have one property that Ive owned about 10 years now I have free cash flow of about $1700 a month, and the value is up about $140k (it went down in value the first 2 years I owned it)