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Updated over 2 years ago,
When to move on up to Class B
Hi BP fam,
Currently, I am working in all Class C properties (duplex/tri/quad, and soon to be 24 unit MF property, also Class C).
I hear horror stories online about people talking down Class C and saying that cap rates are gonna go up and delinquencies are going to also increase, however, we are batting 0% on bad renters and payments from our tenants.
Other investors that I follow (albeit more advanced and well heeled that me at my stage) indicate they would ONLY buy Class B and would not touch Class C, for the above reasons.
I make most of my money buying Class C with value add (have done well - now at 63 units), and am interested in Class B, however - I'm interested to know what the BP Family think about "when" to do that.
My initial plan was to accumulate 100+ units of Class C, add the value, and then liquidate/consolidate into a better asset class. But should I get out now? even when all my tenants are paying well?
Love to hear some thoughts on this.
Thanks!