Hello, new member from Toronto, Ontario

[Wei Peng]

I am a construction manager with many years experience. Used to work for multi national real estate developers. Recently became a full time real estate investor myself. I believe in buy and hold strategy, with a balance between cash flow and appreciation. I've been looking at the US markets for a few months, still trying to figure out which markets are best for me. A few questions.

1). Class A vs Class C properties. Some members here prefer Class A while others prefer Class C properties. My understanding is that A properties have bigger potential for price appreciation, less property management headache, but in the same time have lower cash flow ratio; C properties have higher cash flow ratio, but probably have low/no price appreciation and inherent more property management issues. For out of state investors, class A seems make more sense. But again, price appreciation is always PROJECTION, which you may or may not get... Any thoughts?

2). SFH vs Multi Family. I kind of like the multi family better because of the higher return in general. Any thoughts?

3). Concentrating on one market for economic of scale vs Geographically Diversification. With my current financial capacity I can take 5-10 properties, and I plan to buy 20 eventually. Does it make more sense to buy in one market so that I can use the same broker, same property manager, same contractors, etc.. cause it is really hard to find the right people. Or does it make more sense to diversify among different areas to mitigate risk?

Your comments/thoughts would be much appreciated. Have a nice day.

[Account Closed]

You don't appear to understand cash flow ratio or appreciation.  The higher the cash flow ratio means the market perceives the chance of collecting those rents or operating at a profit riskier.  Cash flow AND appreciation are both projections.  There is no guaranteed cash flow.

People that buy different classes of property should do so because they have a plan and can implement it.  Don't buy class C properties unless you can manage them or manage the manager.