Use this rating and classification system I have created over time to get an idea of the "Class" for the area - A class B class & so onHere is my rating & classification for each livability score.80 and above A+78/79 A76/77 A-74/75 B+72/73 B70/71 B-68/69 C+66/67 C64/65 C-60/63 D59 and below FCheers from Fort Worth, TX

", shows your inexperience.The cashflow numbers for Class C & D properties only look good on paper because few investors plug the correct assumptions into their ROI calculators.Have seen many newbies use a 5% vacancy factor for Class C & D properties with nothing built into their calculations for tenant-nonperformance or the extra damages low-demographic tenants statistically cause.BTW: we recommend using at least a 20% Vacancy+Tenant-nonperformance number.

@Elias AzoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Be sure to find comparable areas, asset class, vintage, and sizeGood LuckGino

@Harish PasupuletiRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

WA, for example, requires that you take 20 hours of state-sponsored classes and pass a state-sponsored test.

I ask you - is it worth it to make the move, take the cut, leave the boat and jump into the sea with just a floatie in order to get more experience in the field and chase a dream? 

My particular program is to only invest in class A in residential (I do b, c and even d in commercial), charge the tenant the high end of the scale, and fix immediately anything he wants that’s even semi reasonable.  

If you are living in Cincinnati, Oh, I would highly recommend checking out Cincinnati REIA: https://www.cincinnatireia.com/It's a great place to meet other investors in person, and they provide a boat load of education that is available in person and virtually.

@Allen Zhu @Bradley BuxtonRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.