Determining neighborhood class (A, B, C, D or F)

[Christie Macias]

Greetings, In looking outside my local market and state, How do I determine the neighborhood class. I’m aware of the crime map on trulia and working with Realtors, but anyone have other strategies? Thanks!

[Irina Belkofer]

If we talk A to D classes and F is a hood ;)

In general, the class of the property correlates with schools: the better the school the higher the prices, more wealthy neighbors. However, location is not the only criteria - condition is important, too. House built within 10 years in best schools neighborhoods will be A, but the same house built in a hood won't be A despite its condition.

And opposite, house built in the best school area but 60-70 years ago will be less desirable and will sell cheaper (that's the best house to flip) but if updated, Rent still be will be higher than the same house in D area.

A area: drive by and you might get stopped by police :) some areas prohibited to drive by non residents, very expensive cars parking in driveways, most likely has professional landscaping, and all that snooty feeling :)

B area is not so new houses, good schools, safe neighbors, low crime. We can't discuss the prices, but for each city it's specificnumbers: you can buy cheaper in B than in A but Rent will be lower. Still good for flipping but ROI is higher than in A. Appreciation is not nessesary lower.

B houses you can find by good schools rating, low crime rates, and driving by on Friday night feels good - people barbecue, cars parking are good and newer, lawns are taken care extremely well

C is the best for bread&butter to rent: you could buy reasonable low, update it not so expensive and rent it to stable Tenants with good jobs, income etc

These are lower crime rates, less houses for sale and more expensive when you count your numbers

D is the risky low income neiborhoods with highest ROI. It's selling very cheap, needs only basic cosmetics because the tenants won't be too picky: the price will be criteria here. Very marginal Tenants here: sometimes they have eviction or two and put extra security deposits, always pay late fees and once in a while there is an eviction happen.

These you can tell by higher crime rate, subsidized school lunches very high, low market value and high %% of rentals (auditor site gives that info as "non owner occupied".

The best idea to get a feeling for the areas you'd be comfortable to buy- drive by on Friday evening or Saturday  whole day long.

Statistics are good but without personal look you might get mistaken - there are plenty good pockets in bad neighborhoods and vise versa