How to classify a neighborhood?

[Therese V.]

I am having trouble with the distinctions between Class A, B, C and D properties. I grew up in an area that I feel safe and comfortable in and my mom still lives there. But, I've been there with recent friends and some are afraid to be in the car without ducking. I think this has messed with my ability to understand the difference between this class distinction.

What does warzone actually mean? Ghetto? Looking at things with an investor's mind is different than what I have normally been thinking and I want to make sure I understand where it is NOT a good idea to invest.

[Dawn Anastasi]

Here has been how I have classified them; not sure how others classify them:

A - Very rich and high end neighborhoods. Large houses (4000-5000 square feet or more), no fences, lots of land.

Example:

B - Higher middle-class homes. Maybe 2000-4000 square feet. Generally very nice neighborhoods. Think "Wisteria Lane" type homes.

Example:

C - General lower middle class to average middle class homes. Maybe 600-2000 square feet. I think this would be the largest percentage of the housing stock.

Examples:

D - Some call this the "ghetto" or "warzone", usually located in a little rougher areas. Areas where you look over your shoulder at night, or don't go at all. Lots more boarded up homes.

Examples: