Disagree here.It's probably one of the better cashflow markets around.Low entry priceHigh cashflowBlue collar working class employed tenantsOnline rent payments Well kept yardsReally great "Bang For Buck".Other sub $100,000 markets are usually C class at best.Toledo offers solid B class for sub $100,000 entry.Thanks

Or , people that live in class B has much more equity because of appreciation, while their w2 income is actually the same between Class B and Class C.That does not seem right and when I look it uo I get 31k for 53208 and 33k for 53209.

Well not really because if the deal goes bad the B-D will get a bad rap and they make their living that way, so they do not want to back a slow race horse.

@Samuel Farhi 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.

Then you would put that 50% down on the second home while assuming their mortgage of 3.375%.Here are some fake numbers:Home A: $200,000 value and you own it free and clearHome B: Seller bought it for $150,000 at 3.375% and it is currently valued at $200,000.

NOI, and thus cap rate, feeds into how much of a down payment is required b/c it feeds into the "sizing" of the loan.Many asset classes, like apartments and offices, have less than ideal in place cap rates today, so you need 35% or 50% down to buy them (unlike a DTI-based home loan, your personal W2 income cannot be used to significantly offset).

Quote from @Karl B.: Roughly two years ago I was dating a surgeon and she had a conference down in Tampa/Clearwater and asked if I wanted to come along. 

Below is the property evaluation projection for a B class property (zip code: 38127).

Up (2 bed/ 1 bath)  and down (1 bed/1 bath) duplex located in a B-/C+ neighborhood in CincinnatiPurchase price: 147,500Estimated cost of rehab: 38,050ARV 215,000Rent-income: 2,045/monthCOC ROI: 7.75%My hesitations:1. 

Your rent avoidance is $100/month, $1,200/year, and $6,000 over 5 years.Taking these four factors into account let’s calculate your net worth ROI for house hacking.Your net worth ROI calculation over 5 years would look something like this:Appreciation: $108,280Loan Paydown: $31,807Tax Benefits: $0 (b/c you aren’t cash flowing)Rent Avoidance: $6,000Total Net Worth Increase: $146,087To calculate your net worth ROI over 5 years, you would divide your total net worth increase by your initial investment (your down payment of 5% or $25,000). $146,087/$25,000=584% This is an incredible return on investment.