Grading Areas/Locations To Invest In

[Vitaliy Zima]

Hello,

I always hear people grading areas, saying C+ is a working class, blue collar and so on to describe an area.

How do you properly grade an area when you are investing in new market or even markets you understand? What qualifies an area to be C vs C+ or B vs B+ area? 

are you looking at average household income? If so, that various greatly within any given city.. please explain so I can understand better. 

[Kerlous Tadres]

A “C” area usually means cheaper and more cash flow but more problems and turnover, while “C+ / B / B+” means more stable tenants, fewer headaches, and stronger demand, even if the deal costs more.