Investors who focus on A&B neighborhoods.

[Account Closed]

I would love to hear from investors who, exclusively or nearly so, focus their SFH investments on properties in "A" or "B" neighborhoods. Why do you do this? It seems like the primary trade off is a quality of tenant base for ROI on your money (less hassle).

My two properties so far were probably in a C and C- neighborhoods, and those were mixed result.  The C turned out OK, but required a lot of effort from me.  The C- was just a mistake (maybe it was a D).

Most of the area near me would be considered A or B at the least.  Housing and rental markets are very tight and prices and rents have been going up and up with little inventory of either because everything gets scooped up immediately.

I'm not necessarily asking a question other than wanting to understand those who focus on these nicer areas and what motivates you to do that.

Thanks

[Peter MacKercher]

@Account Closed

You more or less answered your own question, really. Currently I do B/C neighborhoods and I'm looking to move towards A/B for the reasons you listed: quality tenant base, less maintenance costs, and less volatility (hopefully) in management. With the A neighborhoods especially you'll have tenants who are willing to pay higher rents because there are high-quality schools in that zip code; some tenants here pay $1000/month or more for a 2/1 in a zip with good schools.