D Class Multifamily Investments

[Account Closed]

Good morning BP, I've been reading some of the various post in the forums about the horror stories of investing in D class Apartments. I'm curious to see if anyone would know of any successful investors, methods, or reputable resources that would assist me with becoming educated on how to be profitable in this class of Apartment Investing.  

-Thanks

[Staneley Cesaire]

In my opinion, somtime it is difficult to tell from a class d or a class c. I am not talking about war zone. But it has a lot to do with your own way of thinking. Most people who invest on properties in “class A” areas spend tons of money providing the best property. Then when that same person buys a property in a “lower class” neighborhood they go cheap. The reason giving is it’s just a rental, tenant will only brake it. They buy used stove, fridges, don’t paint well, etc... When they try to rent it out. The best tenant in the area notice this and don’t take it. The tenants that don’t care takes it. That tenant immediately start calling about the fridge not working, then about their kids getting lead, etc... What do they do next, well they send the cheapest worker, who is either angry that he is working cheaply or inexperienced. He probably causes more damages, but the owner will never know. They don’t go there cause they secretly hate the place and the tenant. Now imagine this! Imagine you fix the place right. I am not saying put the high end, top product but buy new appliance, paint well, treat the place like it is an “A class” property. Treat the tenant like they are “a class” tenant.  Fix the place right then put a good tenant in, that will stay. Screening is important. Find someone that has a history of staying in there home, clean, and can pay. You will be surprised to find out in “lower class” neighborhood there are great people who are dieing to have a nice, clean home. Many of them will not get a home in “higher class” neighborhoods. They will often get denied because they get some form of assistance. Other time they still want to be near family and friends. keep in mind when accepting a person who gets assistance don’t buy high end stuff. They not be able to replace it if something happens.  However don’t go cheap. Things that are too cheap can cost you more in the long run. So find middle ground. Also ask in your application If you can inspect their current apartment. How do they treat the appliance they have now? Is the place clean, etc...These method ensure you have a good tenant and don’t get to many calls. This strategy will put you ahead of the game cause most landlord in these areas are not thinking this way. Soon the word will travel how your managing and the better tenant will start to find you. Keep in mind these class system “C class, D class, B class” can also be in your head. if you treat your place like it is that class then it will be that class. Many may not admit it but often when people talk of class system, their categorization is heavily influenced by neighborhoods race or ethnicity.