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Updated over 5 years ago on . Most recent reply

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22
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Vic Oyedeji
  • Rental Property Investor
  • Durham, NC
5
Votes |
22
Posts

A class C location for good cashflow, or no?

Vic Oyedeji
  • Rental Property Investor
  • Durham, NC
Posted

I heard a tip from one of the guests of episode #300 of the BiggerPockets podcast that said it's better to invest in a better location (class B and up) while getting less cashflow, than to invest in a class C (and below) location although more cashflow is possible, due to the higher price-to-rent ratios.

This is because better locations generally have better tenants, and although investing in a lower class location gives better cashflow, the possible tenant headache may not be worth it.

What are your thoughts on this?

Most Popular Reply

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601
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821
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Marisa R.
  • Developer
  • Atlanta and Detroit
821
Votes |
601
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Marisa R.
  • Developer
  • Atlanta and Detroit
Replied

Can you have a bet each way

A mixture of both, C for cashflow and perhap B for appreciation

This has been my strategy working well for me so far

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