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Updated over 6 years ago on . Most recent reply

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How to distinguish the neighborhood as class A,B,C OR D

Posted

What is the criteria to distinguish the neighborhood as class A, B C or D. 

Is it based on the rent or cost of property or density or the developments in that neighborhood? 

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Ed Emmons
  • Specialist
  • Milford, ME
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Ed Emmons
  • Specialist
  • Milford, ME
Replied

This is a general guideline but it will differ a little by area.

A - new construction with amenities in best area of town, often where professionals and wealthy people live

B - good neighborhoods where middle income live, generally house will be older but well maintained and few subsidized properties 

C - lower income, mostly rentals, a lot of subsidized like section 8, etc

D - dangerous, graffiti, drugs, boarded up properties

You won’t find all classes in all areas. Rural areas may not have such variations but cities generally will. The cost of properties generally will be highest in A sections and therefore the cash flow will be less. Money is made in appreciation. B areas have both. C has a lower appreciation rate but cash flows are generally higher as well as management and turn over. D maybe would work for someone with a lot of money that plans to revitalize an entire area and move it to a C class. Or if there is a small D section surrounded by B or A. An example would be a small run down trailer park on the coast.

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