We placed our biggest bet on a single property, class B shares.

So I'd need to figure out an agreement/return between A and B, and then I'd need to figure out an agreement/return between (A&B) and C. Or

@Makani Donaldson it all depends on your investment goals.If you buy a Class A rental, it'll usually have negative cashflow, which will be hopefully offset with appreciation and better tenants.If you buy a CLass C or D rental, it should have pretty good cashflow because you may not realize much in appreciation and you'll have a lot more problems finding good tenants.

I like this, bet on the jockey more than the horse kind of situation.

Would you consider it to be in an A, B, C, or D neighborhood?

Nothing really appealing to me as an accredited investor. let's refine your approach.Contrarian bet on B class office needs to be 50x equity or something

If you're going to go with an out of state market, go with an area that appreciates (no Class C or D areas).

Their solution was for me to take over ownership of not one but five homes from Jeff's portfolio, all of which I had sold him and subsequently leased.Despite my being patently unfinanceable, the bank president placed a bet on me because I knew the homes, I knew the tenants, I knew what I was doing, and I was rabidly hungry.

If you ask around, you likely know someone in CA investing out of state.If you evaluate a long term rental property from a micro view of let's say the Year 1 return, with interest rates where they are, and using conservative estimates for rent, you'll be hard pressed to find compelling cashflow without going into C or D class areas nationwide. 

Even cash flow on a decent property from years ago doesn’t compare to the appreciation over the same time.I have seen cash flow investors that end up investing in Ohio or some other C or D neighborhood regret their decision after realizing there is zero appreciation in those places and cash flow won’t even cover a major expense if something happens.