I know property managers in every state who use non-refundable application fees and it is the standard for every class of property and applicant.

Let's assume that the neighborhood is a C class and the median income of the city is greater than 3X of the market rent.Here are some of the considerations I've come up with so far:- Units are in need of renovation and capex is too high or not available- Unit quality is not the same as market - Seller is worried about losing tenants due to increase- Vacancy rates are high or filling units have been difficult- Rent increase would take multiple increases over multiple lease periods to get to market rate if seller is trying to retain the same tenant- Seller inherited property and just want to liquidate- Seller needs to liquidate quickly (financial burden, sickness, quick exit from land-lording)It seems like I might be missing a warning sign about a deal if they are selling with current rents that are under market; but again, this seems to be most of the properties I've underwritten.And in the same vein, what should I be worried about when purchasing a deal with under market rent with the intention of raising them after purchase. 

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

We look at lenders (so long as they lend in the asset class you are considering) as an additional line of due diligence (they deeply care about their money and they are likely more sophisticated than you are).

Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots. 

I'm closing on a 74k sq ft (5 warehouses) Class B Industrial facility this week. 

Our Google reviews boast an almost perfect rating, and as Hannah pointed out, our NPS score falls within the "world class" range!

Are these Class C zip codes?  

You need to target upper middle class, second or third time home buyers, to get the best profits in a spec.

These are what we call "A-class" markets—areas with strong fundamentals, high demand, and typically excellent long-term appreciation.