Answer: Class B and Class C multifamily assets—especially in B-grade neighborhoods.1.

Another house in the same neighborhood and street just sold for 230.

For rentals, depending on the neighborhood, the standards are usually quite a bit lower then a retail buyer would demand.On lower end basic rent houses things need to be clean safe and functional.  

It’s smart to shop around with a few lenders, especially ones that work with investors (some offer DSCR or portfolio loans, which can be more flexible).As for rent-to-price ratios, a solid benchmark is the 1% rule meaning if a property costs $150K, you’d want to get at least $1,500/month in rent.

For example something big is being developed nearby that could suggest changes to the neighborhood?

So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.We use the following to rank Property Classes, in order of importance:Property Tenant Pool: closely linked to location, but not always.Property Location: closely linked to tenant pool, but not always.Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.

I am in the process of replating the three lots with five lots and will be building five identical duplexes on each lot.This is an already developed neighborhood, and there are a couple of duplexes and single-family developments around this neighborhood.

Just know that terms vary a lot by lender, so it’s worth shopping around.

I like the neighborhood and saw this as a great opportunity to own a strong asset in it.

I think it’s worthwhile for me As an investor who started cold calling in the Milwaukee market (im virtual I’m in Cleveland) cold calling to other investors and agents in the market helped me learn the prices and neighborhoods and some of the players in the market.