we'll look at anything in B-C class areas over 4 doors.

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.

C.

Just looking to see what’s everyone’s thoughts about investing in newark nj long term in the ghetto (C-D class ) .. the market is crazy hot right now in this area.

@Brianna CrumrineColumbus has a lot of opportunities for small multifamily buy-and-hold, especially in B and C class neighborhoods where cash flow can be strong and appreciation steady.

We’re seeing strong demand in both long-term and short-term rentals, especially in B and C-class neighborhoods where returns are a bit stronger.Texas in general fits your criteria well: no state income tax, relatively low property taxes (compared to CA), and growing population centers.

BRRRing is getting more difficult as prices have risen.Too many investors are now chasing Class C & D property deals - without properly understanding the additional risks of these asset classes.So, be careful and understand Neighborhoods and where to invest.

@Steve Wilson what type of tenants will you be targeting in Port Huron - Class B, C or D?

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.

- We see many investors buy Class C/D properties expecting Class A/B results - which may only happen for a short time, but not long-term.Please be aware that zip codes do NOT work in the City of Detroit!