my RE income from my rentals is semi-passive of course... so less active than W2 but more active than dividends or social security.I just dont really see owning rentals as passive to me its active if your going to stay right on top of them and have them perform like you want them to ( this is specfic to owning C class low B class sFRs  Not those who might own 100 unit apartments with professional management those are passive as long as they are working good. . 

Those four classes are where the majority of investors will buy rentals. 

It's a Class A location in Sacramento.

You have to do some work to create real estate specific "Classes" and expense accounts for QB.

I learned that with an A-Class tenant expectations are higher and had to step up my level of service.

Then we keep the accounting straight via Quickbooks with each unit a different Class.

From a risk point of view, there is no real middle class and a very small upper class.

Unless you're in a Class A Neighborhood like Palmer Woods, Indian Village, Sherwood, etc,. the additional rent probably won't support the cost to build:(More profitable to take the build funds and buy another property.DM us if you'd like to discuss more...

So I would consider that to be an A class area. 

I've 100% focused on Adaptive Reuse of Class B Industrial Space.