In the middle of those two extremes might be a small business with 3 years left on their lease, but they've made improvements to the property that aren't cheap to remove, such as perhaps a dental office (dentists might be pissed that I put them in the mid-risk category, but all the dentists going out of business in 2020-2021 taught us that American consumers apparently regard dental care as an optional and "luxury" spending item). 

Purchase price: $755,000 Cash invested: $80,000 On going Luxury flip in Broadview Heights Ohio

Located just a stone's throw from I-35, this prime location beckons both travelers seeking transient luxury and long-term tenants, including discerning retirees.With meticulously designed sites and secured permitting, this venture promises to redefine luxury travel and investment excellence.

Builder grade or luxury products?

Finishes builder grade or a bit higher such as luxury laminate, run of the mill kitchen shakers. 

Anything that's high priced luxury huge lot sizes, amazing landscaping, bigger garages, and HOA fees is probably A class. 

My properties are typical mid-grade rentals in good neighborhoods (ie, not luxury apartments). 

I'm a new investor who's recently purchased a property in the Malibu Groves area, close to some impressive mansions.

Quote from @Jonathan Soto: cash flow would be tight but you have a great rate. might be best to sell and cash in the tax free capital gains if you qualify and reinvest the money to make more money.Definitely qualify for tax free capital gains, which is why it’s been soooo tempting to just sell haha but I also know that they’re developing a lot of nearby areas and more and more luxury stores are starting to pop up in the woodlands, which is 5-10min away, so I feel like this home could appreciate so much more in the coming years (probably lol but recognize everything could crash too)  

If you haven't yet, look into what Scott Trench is doing - luxury house hacking in Denver.