Your experience investing muti-family in class-C areas

[Henri Meli]

I have been trying to invest in multi-family for a while now. I have run analysis on various properties for the last 3-4 months. Every time I found something interesting in a class-A or class-B type areas, it is either overpriced or there are so many bidders jacking up the price ... it is just ridiculous.

Recently, I have started taking class -C properties more seriously. Running the numbers more closely. Doing a more detailed crime-rate analysis,  driving in the areas during the day and at night. Sometimes, even stopping and engaging in conversation with folks who live there just to get a better feel ... etc.

In understand there are plenty of challenges in such areas. But I believe, with the right approach, the right strategy and appropriate implementation and follow through one can make it worthwhile. 

To the more savvy investors out there, based on your personal experience, If you were to list 3 key things that helped your investment thrive in a class-C area, what would those 3 things be? Would you invest there again?

[Justin Ericsson]

Henri I have done about 800 apartments in class C and make millions doing it here in chicago. Here is how to do it in any market 

1) block must I repeat must be desirable for the area (one or two vacant buildings and no bad elements)

2) good property management (treat your tenants like hotel guests)

3) buy well high yield for higher risk

4) solid construction with lots of upgrades keeps tenants long term. I have granite, hardwood floors, upgraded kitchens / baths which creates waiting lists 

5) if available rent section 8 only tenants with jobs. You get more rent If the voucher holder is employed and they take better care of your property 

That's all you need to do to make money in C markets. Hope this helps!