All Forum Posts by: Thomas Young

Thank You @Shawn M. and @Paul Timmins for the clear up.

And @Shawn M. 

Are there any things in particular you look for upcoming areas besides new developments. Currently I know of two areas I think could be on the move up for similar reason to what you stated. I know that commuter apartments are being built around centers of the towns by the train stations and developers are looking to build out from that area and I believe this could help make the areas more desirable, with easy access to New York and more people moving into the area for that reason.

Currently the towns are based on what Paul said class C towns. I believe they use to be B properties and developers are taking advantages of the drop in price over the years and trying to build them up. I guess just over all I’m interested in your opinion on what constitutes an area that’s on the rise.

Thanks,

Thomas Young

It is the class of the neighborhood.

So an A neighborhood is a very deireable neighborhood to live in, usually easiest to rent out, but doesn't provide the highest cap rate.

A class B neighborhood is an average neighborhood, not as desireable as an A, but still usually easier to rent out and provides a decent cash flow.

Class C neighborhoods are usually less deisrable areas, but provide much higher cap rates and much better cash flows. This is barring being able to keep them occupied. Keeping them occupied, finding good tenants, and keeping the properties in good shape is usually propblems found in class C neighborhoods which is what stops alot of investors from buying properties in them.

Hello All,

I have been researching, saving, and reading about investing in real estate for the better part of the last year and I believe I may finally be where I need to be to purcahse my first investment property. I am looking into purchasing a multi-family property. I wanted to get some peoples' opinions on Class C neighborhoods. I know most people are against them because vancancies and repairs tend to offset profits and lower the high advertised cap rates, but I have found properties in the nicer sections of class C neigborhoods. Looking to see if other people have found success in this methed. I feel as though it is the only way to really start without having a large amount of capital.

Thanks for your time and any responses,

Thomas Young