How to determine if a property is A,B or C class

4 Replies

How do you determine if a building is a certain class? Is it purely subjective or are there some kind of guidelines?

It's a long thread so I'm pasting the most important component here:

"There are no strict definitions of these terms. They're just rough grade people use to give an idea of what a property is like.

A: Newly built properties in the nicest areas.

B: Slightly older property, but still nice. Might be not quite as nice of an area.

C: Older properties. Likely really could use some work. Not the best areas. For investors, these are really the bread and butter for rentals.

D: Run down properties in bad areas.

The area and the property can be described separately. Its possible to have a run down property in a great area. Harder to have a great property in a bad area, though."

Credit to @jon holdman (He's a bigger pockets moderator so this definition is probably pretty solid)

We look at properties and areas separately. For example, you could be looking at a B property in an A location or vise versa.

Many value add investors look for B & C class properties in A & B locations.

Hope that makes sense.

I think what @sean said is true. I look for ABC locations then overlap it with the AS IS AB or C property (which can be lower or higher) than end up with a finished product A B or C.

So of course you want to look for a B or lower in a A location not a B or higher in a C location. It that clear as mud!/?. 

I flip in the C+ locations and higher and wholesale and rent in the C+ locations and lower. But that is just me. Good Luck

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