Account ClosedWhile you're out there look at the guide that James Wise put out regarding A B C D F neighborhoods.

I typically look at neighbors further south (Calumet Heights, Lawndale, Pullman...etc).I dont want to deter you as there are definitely people making money in Engelwood, but it's not a B neighborhood. 

Understand A/B/C class neighborhoods and what we want to invest inCheck safety/crime, schools, things to doCheck if state is landlord friendly or tenant friendlyCheck regulations within each stateCheck if properties fit 1% rule and run analysis on numbersNarrow to 2-3 markets.

Chris, the "no money down" thing works like this: You get Transactional Funding to close the AB transaction.

In addition. your attorney must be the one responsible for the recording of both the AB closing and the BC closing.

Does it only work in C/D class neighborhoods or could the strategy work for that distressed property in an A/B class neighborhood?

Things like a 25% expense ratio for a single family house in a D neighborhood (the TK operator says it's a B though); blatantly false property tax numbers; unattainable rent rates ...For those of you considering a TK purchase, a 20% expense-to-rent ratio is completely unrealistic for ANY single family rental around here, regardless of neighborhood class. 50% is more like it, give or take a little.

One is the "AB" agreement between you and seller, one is "BC" between you and end buyer

He was an A/B student when he dropped out of school... so he isn't a dummy. 

He was an A/B student when he dropped out of school... so he isn't a dummy.