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Updated over 1 year ago,
What do you prefer? Class A/B vs C neighborhoods for small multifamily (2,3,4 units)
Currently, I own 3 MF properties. 1 duplex in a B neighborhood and 2 duplexes in C neighborhoods. I am realizing that my B duplex has been performing much better. My tenants have been good, 1 inherited tenant has been staying there for over 4 years now. Rents have gone up considerably and cash flow is great. On the other hand, my C duplexes have phenomenal cashflow, but I seem to always keep getting hit with tenant issues and stuff breaking down.
Based on my experience, I feel that focusing on duplexes in A/B areas fit my goals better. Cashflow may be less in the beginning, but much less headaches. But I also realize this is based on 3 duplexes. I was wondering what other investor's experience has been like? What are you opinions on investing in small multifamily in A/B vs C neighborhoods? I know neighborhood grades are subjective, but I generally classify them by tenant quality, rents, and home prices.