If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare. 

This is a B class property. 

Hey Andrea, for STR you're definitely going to want to look into A/B class areas.

I also recommend buying in a B-class neighborhood so you can learn the ropes with an easier tenant class.

I think it's the best way to A/B test the potential.

It's a spacious 4br 2.5 bath with finished basement in desirable school district in a B Class neighborhood.

I'm looking for something that meets the 1% rule in a B or A class neighborhood."

AB 968 will make it more difficult for first-time investors to "flip" our quickly "house hack" homes since anything resold within 18 months.

@Lindsay Davis"$150,000 can buy you a tenant-ready 3 bed, 2 bath single-family home in a B-grade neighborhood.

It's been a tough market for high or maybe any cashflow with decent A/B properties in some parts of Houston, BUT the long-term equity growth is what makes these type of investments very positive in the long-run!