Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

And as you mentioned, many of our Section 8 families are single parents juggling life, they’re looking for reliability, not luxury finishes.Where experienced operators win is by creating homes that are:SafeFunctionalDurableEasy to maintain long-termThat’s what keeps inspections smooth, turnovers low, and cash flow consistent.Appreciate your perspective, more investors need to hear this instead of trying to turn C-class rentals into A-class rehabs.

Not everyone can buy homes down the street from where they work and not everybody may want to live in their flip assuming it's a C neighborhood. 80% of RE options may not even apply to real people.Ya I pulled money out and it cost 6.5% interest and other fees.

Class C style tenant  What credit score are you expecting a target tenant to have?

@Matheus Souza before you take the advice of most of the posters, please understand they're pointing you towards buying a Class C property!

There is limited online information about them, except that they have a C+ rating on BBB, and they do not provide an address on their website.

Hopefully the current deal U/C closes and posting the disposition splits with $ amount per call, $ per lead and overall cost of proceeding as a cold caller.

I also like pieces that can serve multiple purposes (e.g. modular coffee tables that the guests can move to better suit how they want to use the space, night stands with built-in USB A and C, art that doubles as lighting, etc.). 

Focusing on off-market, undervalued properties in C-class neighborhoods can give you the cash flow and equity growth that’s tough to find in higher-priced East Coast markets.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.