(C-class neighborhood and property)

I also avoid D Class areas.

I do want to get out of this C class house and invest the profit into a B or B+ home. 

Plenty of appraisers have little to no experience in STRs as this asset class (if one wants to even call it that) is relatively new in the REI space, and thus, the method suggested above is probably not that likely to succeed. 

Any C-class neighborhoods are more geared towards Section 8 and long term renters.

@Cory J Thornton what you are looking at is Class A properties.Those aren't cashflowing for buyers anymore due to higher interest rates (they haven't historically either).If you compare new construction to existing Class B & C properties, it's almost always cheaper to buy than build.

Hey BP Community,I am starting to look for a BRRRR deal in the Sacramento area and would like to know if anyone with investor experience could help me with identifying the Class for the Sacramento area.

Would love to learn more about your class. 

Please tell us more about the financing you have lined up - is it a traditional mortgage, DSR loan, HELOC...Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location(s) 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.

This is a Class C area potentially moving up to Class B.