Would you invest in buy and holds in St . Louis City?

[Cynthia Smith]

Hi everyone, quick question. Are there any investors who just love investing in class C neighborhoods? Why or why not? What if the buy and holds are for the right price? These are located in the city of St. Louis, they are not turn key properties however will be great section 8 properties. When choosing to invest in Class C properties, what do you base your decision on?

Thanks a lot for your feedback.

[Mike D'Arrigo]

@Cynthia Smith Personally, I don't think there's anything wrong at all with C class neighborhoods but it depends on how you define C class. My definition is a lower income, working class area that isn't in the hood. It's when get in to the very cheap, D class neighborhoods that you're likely to have a tough time. We sell turn key's in A through C class areas in Indianapolis and Kansas City have had a lot of success with all classes. The key is proper tenant screening and good property management. Having said that, as a rule you will get more consistent tenants in higher class properties but it's a risk/return tradeoff that you have to weigh and decide what works best for you. My advice is not to dismiss C class right off the bat though. I'd also recommend talking to a property manager in your area and get their input.