Neighborhood rating system

[Brian Schmidt]

Hey BP Fam, I'm a new investor learning the ropes. Haven't done a deal yet but want to BRRRR 5-10 properties in the next 5 years. I'm practicing anylyzing deals but am wondering, when someone says a house is in a "B" or "B-" neighborhood, how to they come to that conclusion or where do they go for that info? I imagine it relates to the quality of the area but on what metrics? Thanks in advance!

[Josh Oaten]

@Brian Schmidt

As @Ned Carey said, it is subject to your own views. I use an A-E scale for both the location and the property itself.

A = Built in the last 2 years, top of the line building and amenities in the wealthiest area

E = Looks like a direct hit from a bomb in a war zone area full of crime

This can be very subjective per investor, Im just giving a rough example. Obviously there wont be properties and areas that look like a war torn country but you will know an E when you see it.

We focus on B and C properties in B areas, so we are looking for properties that need work to bring them up to standard of the surrounding area.