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.

I find new builds to be one of the tougher investments to make work in today's environment with high interest rates, higher insurance rates, HOAs, and that's not even counting the higher property taxes with new builds too. 

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.

What Property Class are you targeting?

That's the beauty of this asset class!

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. 

Hi my name is Alexandria and I was wondering if you mind answering a few questions about real estate investing. this will be completely confidential and it's for my class and possibly a future career.