Rental Property Investor · Florida State, FL · Member since 2022 · 66 posts · 30 votes
I'm getting ready to jump into a property that looks like it's in a C neighborhood. It would be a BRRRR and I want to do everything I can to make sure this property looks great. Do you think I'm foolish, what should I look out for?
That's an open-ended question but for me - and I invest in mostly C-Class - prior to buying I look at:
-Crime-Mapping (one can also call the local police dept. and ask about the property in question - they'll connect you with an officer who works the area and can give you the reality of the crime and if it's getting better or worse)
-Literally drive to the property on a Friday or Saturday evening and sit in the car for a bit to get a feel of what goes on
-Look at the rents. Are they superior to what you would be getting in a nicer neighborhood? For me, I can buy a property for less than half and get a similar rent - it's just harder to find good tenants, which leads me to...
-...what's the rental demand in that area? Check Facebook marketplace, Zillow, and Apartments.com to see how long listings tend to be active before a renter is found
-I pick up a lot more garbage at my C-class properties. And neighboring buildings are often not taken care of compared to a higher-class property.
And of course, do what you would do with any rental in any neighborhood: know the taxes, local laws, etc.
Hard to say if this is a “foolish” play. The fact it is a C class property isn’t enough to make it a smart investment or not. After all what a C class property is, is still a personal opinion.
I would ask my self the following
1. Did I have an exit strategy, and or prepared for any contingencies
2. Am I confident in my numbers?
3. Are other investors having success in this market? 4. What type of tenants live in this area and does it make sense for your strategy.
That's an open-ended question but for me - and I invest in mostly C-Class - prior to buying I look at:
-Crime-Mapping (one can also call the local police dept. and ask about the property in question - they'll connect you with an officer who works the area and can give you the reality of the crime and if it's getting better or worse)
-Literally drive to the property on a Friday or Saturday evening and sit in the car for a bit to get a feel of what goes on
-Look at the rents. Are they superior to what you would be getting in a nicer neighborhood? For me, I can buy a property for less than half and get a similar rent - it's just harder to find good tenants, which leads me to...
-...what's the rental demand in that area? Check Facebook marketplace, Zillow, and Apartments.com to see how long listings tend to be active before a renter is found
-I pick up a lot more garbage at my C-class properties. And neighboring buildings are often not taken care of compared to a higher-class property.
And of course, do what you would do with any rental in any neighborhood: know the taxes, local laws, etc.
@Karl B. "Literally drive to the property on a Friday or Saturday evening and sit in the car for a bit to get a feel of what goes on" - This is exactly what we do BEFORE even walking a property or wasting anyone's time. Usually ride my bike. If you don't feel safe riding a bike... maybe it's not C class.