Buy in "C" neighborhoods; pass to a PM?

[Philip Hy]

Regarding the investors with +100 units, are they basically doing it buy buying cheaper properties (<$100k) in "c" and "d" properties and then handing off to a property manager? I've been buying in solid middle class "B" neighborhoods to avoid problem tenants. Zillow shows schools 5 or above. I'm buying for 150k and renting for about $1,400. Putting down 20%. After all expenses, PM fees, I'm getting about $130 cash flow. Learning a lot and investments seem solid, but process seems slow and running out of cash for 20% deposits. Is there anything you would do differently? Buy cheaper houses and let PM deal with problematic tenants? BRRR method seems to only work if you buy in worse neighborhoods?

[Kevin Siedlecki]

@Philip Hy - the $130/mo cash flow per unit is on the low side, but I don't think the answer is to go to worse neighborhoods. I don't have 100+ units, but my cash flow per unit is significantly higher. My strategy is to find places with underutilized space so you can add rental value to them. A storage room you can turn into a bathroom, a closet you can turn into a laundry room, a shed you can charge for storage, or an unfinished basement/attic you can add a lot to are all ways I've increased the rent on places to create higher cashflow.

But remember real estate is a get-rich slow world. Sounds like you're doing fine.