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Updated over 7 years ago,
Moving from C class to B class?
Hello,
I have the following question about the tradeoff between rent/purchase ratio and property class:
I typically invest in C/C+ class residential MFs (duplexes) which typically have a rent/purchase ratio of 1.4% to 1.7%, but I have this opportunity for a seller-financing deal for a B/B+ class property, but the property has a rent/purchase ratio of just 1% and that gives me pause. Any thoughts on whether this is a comparable deal to my other C/C+ class properties, better or worse?
I would appreciate any comments.
Thank you,