It's also another reason I could think of a lot better places to put my managed money than in REITs, especially those that are catering to Class C or below tenants. 

If you decide to house hack or start off by buying a rental property you'll need to know different areas, which are Class A, B, C or D (definitely don't do Class D as new investor).

I think there will be a market for it and you will gain some market share, but I don't think there will be tons of profits coming in.

Is there a formula to understand whether a real estate is class C or not?

Most out-of-state investors looking at Detroit are typically focused on cash flow, which means they're usually targeting C or C+ neighborhoods.

@Matthew C. several thoughts:1) Appears you have a Class C or D property. -- Thus, you can expect to get Class C or D tenants, which have a 15-25% probability of defaulting on their lease payments.2) If your PMC is lowering FICO to 550, what are they doing to improve their screening in other areas?

Also take a chance and look in 'D' areas that you suspect that are heading upward (gentrifying) towards C or maybe even B.

@Jacklyn Robins not trying to be difficult, but how many Class C or D properties do you have besides this one?

First, he says you make offers with his offer template - but the fact of the matter is that the law is different in every state, and one template will *not* necessarily be legal in any state other than the one he is in, and I wouldn't even bet on that.

Every example listed above this response referenced rental amounts of at least $2,000.When it comes to managing Class B properties/tenants, the flat fee model can still work, but issues with services start to appear.We've not seen a flat fee PMC effectively manage Class C or D properties/tenants here in Metro Detroit.