Moving from C class to B class?

[Tarik N.]

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,

[Diane G.]

1% for B sounds a lot better than 1.7% for C... my $0.02