Whats it like to invest in C or D class properties?

[Chris Gawlik]

I think with the economy the way its headed there is going to be a need for more affordable housing.  

Wanted to hear from those of you who are successful in the C and D class property niche. How many properties do you have? How do you handle repairs, compared with other B+ and A type real estate classes? How and why did you choose this niche? Are you still currently buying this type of asset? What state and local areas do you buy in ( please be as specific as you can )? What are the advantages and disadvantages of working with this type of asset class?  

[John Morgan]

@Chris Gawlik

I prefer C class hoods. Huge demand and ROI is higher. I'm ok with not cared for yards and bad school districts. I target blue collar areas that are in high demand. Almost all my tenants will never be able to afford or qualify for a home to buy. I treat them great and keep the properties in great condition in the hopes they stay there forever. I'm not worried about a recession. People will move down from B class areas to mine. So if anything, rents in C class areas will increase more during good or bad times due to demand. Maintenance on my (1940-1955) C class properties don't seem to be much more than my newer nicer B class properties. My tenants all seem great too. So no complaints!