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Updated almost 9 years ago,
Buying in "C" neighborhoods
Hi All,
Just starting into this real estate adventure on my first couple properties, I have an agent I like (reco from a good friend) and am personally interested in cash flow and COC return so I point out several properties I'm interested in and the agent says "I try to steer people away from those types of properties, "C" neighborhood properties, they're just a lot of trouble". So he's pushing me more towards "B" neighborhoods which have lower COC (~14% instead of ~18%) and almost half cash flow. Now I'm wondering, given a good property management company, how are "C" neighborhood properties more trouble than B for me? If the vacancy loss, management fees etc are all disclosed and calculated into the property performance, why not pick the more performing property even if its "more trouble"?
Thanks!