Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
How do you draw the two dividing lines between these three types of neighborhoods? Is the A-D (and sometimes F) system in common use for grading neighborhoods the best possible system for those interested in investing in low-income, high-yield areas, especially in Rust Belt and East Coast cities?
Hoping this turns into a productive, informative thread that dives deeper into this topic than we usually seem to go here in the forum.
Honestly, I think the ABCD system is doomed to stay vague, because there really are just so many shades of grey, and there's even different "Greys" you'd really want to track if you are getting serious.
For example, in my reply to Lyman I was talking about how I live in a C+ type area, but I regularly visit an B/A- area that is right across the freeway. That's one reason I really like living in (and investing in) that C+ area, and it has high demand because we are close to everything. Another C+ area may only be surrounded by C- or worse areas, and I wouldn't readily invest in that C+ area even though it is "equivalent" to my C+ area.
However, if you did boil it all down to just one score, I think for our purposes, the ABCD system should relate to what sort of management style is necessary and problems a management company in those areas would have, since that's who we are in this subforum (landlords) and the kind of thing newbies to an area are really asking.
So maybe:
A = these are luxury rentals and need higher finishes, maybe high quality AirBNB or high end corporate rentals. You have to be on the ball and "builder grade" finishes may not be competitive.
B = Suburban renters. They pay on time as long as the economy doesn't go belly up. Biggest management headache is probably who mows the lawn. (I am not in that space so I imagine it to be all Ozzie and Harriet stuff) You can manage this remotely and its easy to pawn off on a reputable management company.
C = Tile installers and their 3 kids. Need to take screening into more nuanced territory, and you're getting into the realm of good management companies not wanting it due to lower margins. You have to understand people are more paycheck to paycheck, and be a little more understanding and flexible for good tenants, while still being strict about the rules. This is also where there are so many shades of grey, and local knowledge is vital.
D = (I am so sorry about saying this but...) single moms with a lot of kids and no money, drunk old men, and rough young men who are probably in the "cash-based" businesses. The smart, driven and responsible tenants will move out as soon as they can. This is Section 8 territory, and not for the faint of heart. You need to be tough and willing to negotiate with tough people who have nothing to lose. You can make it work if you are local, but you will either wind up a mean-spirited slumlord or burnt out. California/NY money goes here to die slowly. You need to have an eviction attorney in your team. (And when there is a nonpayment, don't go confront them in person alone or you can wind up dead in a crawl space.. it really happens!)
F = You just flew in from California to see what Clayton Morris sold you. It was hard to find the place because junkies stole the street signs for scrap metal. Your rental car is stolen while you're standing in the tall grass admiring your burnt-out husk, and a one-eyed squirrel with no tail mugs you while you are walking to the local bodega to ask through the bulletproof glass if you can use their phone to call a taxi, who laughs and hangs up on you when you give the location.
@Nicky Reader Based off of everyone鈥檚 interpretation I think I would put Olde North is the B- range. I handyman for someone who has a bunch of houses in this area and am there every afternoon. I like the area and all of the homes are in the 105-120 year old range. I think that something would be stolen if you left it laying out but garages and sheds are not being broken into. Noise, traffic, and trash are a problem from the college students. They are also a great source of income for rentals. He has one property that has been sitting for years because he thinks it haunted, maybe I could get a deal on the house and a few priest to run the guest off!
@Nicky Reader F - is the response that I get from people when I ask about South Linden.
I probably would agree in retrospect. I once found someone's wallet and ID in north linden and drove down to 22nd ave to return it. It was completely burnt out and thugs standing around everywhere. The address on the ID was a boarded duplex with the door kicked in on one side. I wound up just turning it into the police. I am not yet crazy enough to do anything south of Hudson on that side of 71.
Also about that haunted house in olde north... i do buy haunted houses! I will evict the ghosts and everything. (Although it might be a carbon monoxide leak, CO poisoning looks a lot like a stereotypical haunting, 100% serious)
I don't know much about ABCD etc. but I know age should not determine anything or else every downtown would be rated as a D or F.
You'd probably need to rate the condition of the homes in the area with ABCD since these older homes will be remodeled very nicely every 10 years or less in an A neighborhood. I've seen this personally where A neighborhoods get 50-100k updates every 10 years or so with no reason other than people being bored with what they have. Age is no factor.