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Updated 12 months ago,
Deciding on the class type area where you want to invest
Hi there,
I'm new to BRRRR and looking to make my first deal. I understand there are classifications of zip codes/neighborhoods to Classes A/B/C etc -
I was told that usually classes A/B make more on appreciation, but barely cash flow (especially with the current interest rates), and that in C classes, you can generate some cash flow. My main focus would be to build equity so definitely appreciation is good, but would also like some nice monthly income from rent.
The thing is (and maybe it's just me) - these C class neighborhoods seem to be with higher crime rates, I'm not sure the quality of the tenants it might bring over etc, so I have some reservations about them, but not sure if it's justified or not.
Anyone have any suggestion on the matter?
In terms of areas to invest - I am currently looking at a few different options - either Columbus Ohio, or suburbs of Atlanta Georgia (I will be doing a remote investment as I live in NY)
Thanks,
Gilad