What do the property class types mean?

[David Bohner]

I have been listening to the Bigger Pockets Podcast and the term A class, B class, and C class comes up often in respect to property pretty often. I've deduced an A class property is a newer property that meets the current ideal trend for the market and B class is nice property but is not the top of the line or the ideal for the market. Is my assumption accurate and what defines the different classes? And what consideration does an investor need to look at when looking at properties?

[Kevin Harrison]

It's really more than just rental income. It is more about the quality of the area and the quality of the tenant. As a fact A class rentals usually pull more rent but not enough to make up for the added expense of owning in that area.

A class rental) In a nice area of town, good schools, highly desirable to live in, usually has highest quality tenants that will take care of your property and want a nice place to live.  

B class rental) decent- nice area of town, somewhere you can walk around at night and not be afraid, working class tenants (see upper middle-middle class), decent schools.

C class rental) somewhere that is usually on the way up or on the way down, solid middle class tenants, safe during the day possibly iffy at night, not a terrible place to live but its definitely not anyones dream home/area

D class rental) warzone, iffy walking alone during the day and definitely not at night, empty properties are likely to be broken into or vandalized, people here are barely making it, quality of schools isn't even a thought.