Recommend you first figure out the property Class/Risk 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.

If Class C or D, then it may be deferred maintenance issues or tenant issues.If Class A or B properties, you should be digging deeper to find out what's going on. 

All depends on the area and goals.In a B-A class where rents are under market and condition is not great, I would prefer vacant, renovate, and rent outlate payments, under renovated, etc are to be expected in C-D class.

@Rufino MendiolaRecommend 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.

What was supposed to cash flow on paper isn't my reality - my suggestion is don't buy Class C inexpensive properties OOS (best left to locals). 

Look for a Dave Ramsey Financial Freedom class and maybe even attend it with your girlfriend.

Hi @Denise MacDonaldUse 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 onhttps://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 F

What Property Class are you targeting?

Working on the rest.We rank them by Class A, B, C & D.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, we recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

Ideally, I'd like to be all-in, including purchase and rehab, for approximately $115K-$130k while adhering to the 75% rule (or close to it) in a C-class or above neighborhood.