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. 

I teach a class once year here at the Milwaukee RPA that is called "How to train your tenants." - many come miss-trained from a previous place.

Prioritize education through online classes and local meetings, cultivate a network of experienced professionals, and stay current on market trends and rehab prices to ensure successful transactions.

Thanks Stuart.I don't think a "thesis" is necessary for real estate investing.Your mixing "thesis" with speculation and prediction IMO$1m in cash is retirement for someone that knows what they are doing in "low barrier" markets like you mention.Same can't be said for higher entry markets.Those that don't know real estate will loose no matter where or how they invest.Personally, I don't care about appreciation as I don't get out of bed unless I can net cashflow 20% net on a deal.For example, just bought a 6 unit in a B class area for $160,000.Currently occupied and renting for $3,000pm.Once minor rehab of $50,000 is completed, rents will be $4,500.I have an offer to sell as is for $250,000.ARV is $350,000.When interest rates go down, value will increase even further due to commercial lending being easier.No need for appreciation on such deals.I'll take them all day long over any appreciation potential.Again, just my opinion and each to their own.

Interesting post thanks for sharing.Do you believe there is a 'lack of natural market participants' in that particular price range and asset class in Philadelphia?

What class of properties are you looking for?  

In my market, because so many class A MF units got built we are having a major issue renting them if they are outdated by even 10 years.