Before chasing condos in Gatlinburg or a college town, pick one lane that protects downside and builds momentum: a simple, rent‑ready single‑family or small duplex in a stable B/C neighborhood within driving distance.

Quote from @Al Watts: @Roger Hobbes "Almost all Black homeownership in 1960 was concentrated in lower-graded (C/D) neighborhoods.

Quote from @Jules Aton: Quote from @Josh C.: Lots of calloused property managers responses here.

What most people do in Tampa: “Garage Upgrade” (not a conversion)What you described is common and usually permitted like this:What people pull permits for (the safe part):InsulationElectrical upgradesA/C extension or mini-splitReplacing garage door with French doors / windowsPlumbing for bathroom + laundryEgress improvementsFire-rated drywall if requiredWhat they avoid pulling permits for:A second kitchenClosing off the unit with separate entry in a way that suggests two dwellingsAnything on plans that looks like a duplex configurationThis strategy keeps the ADU compliant, while letting you rent “rooms” within one unit.3.

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.

Hey @Nick C., I'm sorry to hear you are caught up in this.

Probably C to B - areas.

- 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! 

For example 15212 includes multiple different neighborhoods ranging from C class 100k homes all the way up to A class 800k homes in the same zip.

Two lanes are working best for us right now: hybrid BRRRRs in solid C-plus/B-minus areas and small commercial buy-and-hold via 1031s.