Class C or Wait

[Mark Williams]

Hello BP

In the process of doing a cash out refinance and will have about 30k to play with after other obligations are paid off. Forgive me for the novice question but does it make sense to purchase a property for 30k that will only need minor repairs which will cash flow $600 per month in a class C neighborhood or should  holdI off and find a fixer upper in a Class A?

[Bryce Jamison]

I understand the appeal of investing in sub B areas. The cashflow looks great and they're cheap enough to allow quick entry and scalability. You may not be putting a big enough emphasis on the headache factor of having a C or worse property. In general you'll deal with more issues from non-payment of rent, property damage, and criminal activity. Plus you're more likely not to see the long term appreciation that a B or better property would. 

If I were in your position I'd be patient, save more capital, and purchase in a better area.