What should I expect investing in a C neighborhood?

[Seth Baumgartner]

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?

[Karl B.]

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.