I can see this for higher end A B type tenants.. were rent is 2500 or more a month.. first last is 5k and then you need 2500 security deposit so 7500.00 to rent.. which is very common in our market..  

It's a 2 bd 1.5 bath condo in a B+ neighborhood that is likely to turn into an A-/A over the next 10 years due to light rail construction and a growing university population.

It is not surprising to hear that overall tenants in B-/C neighborhoods create more problems than those in A-/B neighborhoods.

@AP Horvath cap rate is going to have quite a degree of variance depending on multiple factors, 3 primary variables being:Asset class type (A, B, C, D)Property condition (turnkey vs value add)Location (especially with property taxes here)Again, it varies on the factors above and if you are calculating your cap rate via purchase price model or projected price model.  

I’m not sure what you mean by “nice house”, but if you mean in a B+ neighborhood, the issue is generally that the open market rents are higher than what HUD would pay.

Instead, what you could do is let them know that I am really good at doing A, B, and C.

And I am very unsure about what the impact will be in the Los Angeles and surrounding areas.Lots of fortune 500 businesses are over leveraged, doing stock buy backs, and the stock valuations are at an all time high, with super low interest rates.Fracking is having a huge positive impact to the US economy.Stuff I am pondering, as I working through what advice / recommendations to give the investors I am associated with.For the LA Market, here is another analysis from the LA Times, interesting what is not included such as Rent Control, AB 5 independent contractor Law, and businesses fleeing CA easier places to do business in.Economic growth slowing in LA and California: report - Los Angeles Timeshttps://www.latimes.com/business/story/2020-02-20/la-fi-los-angeles-california-economy-forecastI live in Rowland Heights (very Chinese Area), married to a Taiwanese, so I notice things the usual Real Estate Investor in So.

I purchased a property for$ 105,000 , single home in a B/C neighborhood, 3/ 2 , large lot, it will need at least $ 20,000, ARV $ 145,000. houses like this ones are for sell around 175,000 to $ 180,000 .

My suggestion would be to hold if it’s performing unless there was an opportunity to trade up to a significantly better quality asset, like a B+/A location (GV, Summerlin)

Is it a B to A location where your business is optimal?