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Updated over 5 years ago,
Invest in B class or C class?
I keep going back and forth on pros and cons for each but I’m looking for everyone else’s advice as well as I tend to over complicate some things.
Should I keep saving and invest in a B class neighborhood? Local market is very close to the 1% rule. Most deals I see cash flow $200-300/month and usually duplexes.
Should I invest in C class neighborhoods? Can get in a lot easier/cheaper cash flow ranges a lot more but would generally cash flow about $500-1000/month and are triplexes or quads.
Looking for other people experiences and suggestions. My main thoughts are that B class is going to be better/long term tenants that won’t cause too much of a headache, where C class may lead to more evictions and high cost of turnover. But, C class would have higher cash flow and be easier for me to get into the market, money wise. Should I just hire a PM and go for C class and keep lofty criteria?
Thank you all!