Example - borrower uses loan to purchase a home in a B or C grade neighborhood for 380k, spends 50k rehabbing primary home, uses 200k to put an ADU in the back, appraisal comes back at 925k. 

The home is in a B class neighborhood, in a good school district, and walking distance to parks.

Most think they invest in a B, but it is really below median, so a C plus or even C minus.If you want to know if your neighborhood is slipping, track the median price of that municipality/neighborhood against the median price of the metro area or State if you want to Zoom out.Here is an example: Wauwatosa (blue) has been outperforming Milwaukee County, Wisconsin and the US.

I invest in an A/B area with an average purchase price of $500k.  

A B class rental here is probably different than a B class rental in your area as is the profile of the tenant that occupies it.

Is it class A/B/C, B+ or B-? 

That said, here are the actuals:Unit count: 13 offices (sizes range from 165sqft to 2,800 sqft - it's a local mom & pop type commercial building in an A-/ B+ town that's growing) Gross Rent: $20,801Expense Ratio: 50.7%NOI: $9,736 (year 1, after vacancy) ---Cash Flow: $2,536 / moCap Rate: 6.5%

It will NOT be an A/B class property. 

.- I've read about A, B, C, and D class properties. 

https://www.ccebailiff.ca/ab/our_services/residential_landlo...