Sophisticated investors are focusing on how an asset performs over the course of time.

@Ben FrenchYou can find more expensive notes in major cities but two things typically occur with these types of assets.First is you will pay more the note and second is the borrower is significantly more sophisticated and will also employ a legal team and fight you tooth and nail to keep the property if it does have value.

Everyone has a different perception on the different asset classes.Just depends on how you where born and bread 🤷🏻Someone living in Beverly Hills would call my "B class" a "Z Class" lolI consider B class in Toledo to be as follows:1) Good infrastructure supporting home owner and tenant demand (Schools, colleges, hospitals, medical centers, larger employers, etc...)2) Employed tenants that are sophisticated enough to pay rent online.3) Well kept yards, no bordered up homes, pride of ownership in the community.4) Mix of home owners and investor owned (Leaning more toward home owners)5) Lower crime rates and some upside potential from an appreciation standpoint.6) Entry sub $100,000 with 8-10% net returns on cash investments.Every market has different numbers and cashflow expectations Much success

very sophisticated input, learnt a lot here!

Should I put my trust in sophisticated tools like Air-DNA, or keep it simple with Excel and Airbnb data? 

BUT, it does mean that sophisticated lenders believe that THE CHANCE of default in said situation puts the loan beyond the “risk/reward” parameters that they’re comfortable with.  

There was a time when the less sophisticated or those with limited means solely invested in "friends and family" deals.

It also requires gaining a level of sophistication and knowledge that not everyone has the time, inclination or ability to do.

Keep in mind that a number of the larger, more expensive units on Okaloosa Island are managed by large vacation rental companies like Vacasa, Southern, etc OR by more sophisticated owner-managers who have their own direct websites. 

And generally, no sophisticated investor would make a go/no go decision based just on the return (and without knowing enough to closely examine the risk as well).