Class C & D cashflows well on paper, but requires exceptional management of low-income tenants and even then you're playing a statistical performance game (Sectio n8 is NOT the cure-all!).

You could get a duplex in a B-C class neighborhood for 250k and take advantage of a hybrid mix of cash flow and appreciation. 

This is a "C" market about 60 miles away from an "A" market. 

Also the bottom has its own A/C.

I buy n hold single family homes in C+ hoods in the Dallas area where demand is high.

I talked to a few PMs after I had closed on 2 homes (Class C) in Indianapolis in 2023 who gave me very honest feedback after walking one property - one even said he would not manage one of the properties  I also got on Zoom calls with a construction management company about feedback on properties I had made offers. 

Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: 1%-1.4% rule dealsROI: 10-14%Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B- These numbers are based on the “sweet spot” in Metro Detroit.

It takes in account just about everything to give you a livability score.https://www.areavibes.com/Here 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 FBest of luck!

@Angel Lomeli in our opinion, you have this backwards.Recommend 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.

Purchase: $80k-$130kRent: $1200-$1500ROI: Double DigitCash flow: couple hundred/monthAppreciation: Double digit (for past 10 years, will gladly send data)Location: C, B- (suburbs and certain markets)We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare and Auto industries.