Any one has rental in D class neighborhood.

[Elvin William]

Hello, I want to know if anyone is investing in D class Midwest neighborhood. How are you guys doing with D class. I'm more into section 8. Is anyone having positive experience? Thanks. I have 2 sfh in D class. $37,500 and $30,000 another one. Rent is $950 and other is $900. They pay all the utilities. My monthly mortgage is $300 each with 20% down. 

[Leroy K. Williams]

Quote from @Elvin William:

Quote from @Linda S.:

@Elvin William,

I'm going to guess you haven't been in the house recently and seen how your tenants are taking care of it, because that's where most experienced landlords are coming from.   No one ever complains of the rent coming in, but instead of the treatment/damages of the house.     Sounds like you haven't seen the turnover yet, but when  that happens, you will understand more.

I'm not going to lie. Never been to that state. Lol. I have four property in the same city from D class to class b. I'm new to rental property. I have a great property manager who takes great care of my property. When we bought that D class property, there was someone in there already. We kick that person out and got a bill for $30,000. We bought that place for $37,500. The rent or section 8 around $975 a month and they pay all the utilities. I mean it's good to learn the hard way and learn from it. 

Here is the thing, your rental property will likely perform not based solely on whether its a Class A, B, C, or D but more on whether your tenant is a Class A-D person.  There are low-income people on Section 8 who are high class people however they tend to look outside of the Class D properties. Why?  It's not because they are too classy to live in the interior neighborhoods or because it's too dangerous. Those aren't the primary factors.  The biggest issue for them is that quite often Class D neighborhoods attract Class D investors, Low life investors who think that they can buy for pennies on the dollar, invest peanuts into the rehab and then collect free income from the government for years to come.  

If more investors actually improved their property to the point that it becomes the best home on the block in the Class D community, they would attract a great tenant and will help uplift a community starving for reinvestment in the process.