What constitutes a "C" Market?

Price: $130,000 Building Type: DuplexRealtor opinion of Neighborhood grade: C+Property Description: Building breakdown1,440 sq ftUnit breakdownUpstairs unit is 1 bd 1 ba and is rented for $750Down stair unit is 2bd 1 ba currently rents for $750New electric, plumbing and roofRent Comps: $1,129 for upstairs unit and $1,074 for downstairs unitI used the current rents for the breakdown above, but seems like theres some more upside potential. 

@Derrick Roland II Let's see, traffic noise, challenges backing out of your driveway, have to keep kids in backyard and off front sidewalks, big trucks passing by will shake the whole place, can't think of anything positive.All the negatives will reduce your max rent and make it harder/longer to find tenants.What's more important is understanding if the Neighborhood is Class C or D.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

@Thomas FarrellRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Judy C. keep me in mind too!

Baltimore Market Snapshot:Multifamily: Baltimore’s got a decent multifamily scene—median rents hover around $1,500-$1,800 for 2-3 unit properties, with Class B and C buildings in areas like East Baltimore or Hampden offering cash flow potential.

You would be looking at the bottom section step 2b: https://content.enactmi.com/documents/calculators/Form1038.C...You dont add the total new debt, and total new gross income(understood its after 75%, I was presenting my numbers after accounting for that)??...

I'm Diane :) By day I'm an executive assistant to c-suite execs, by night I run my own virtual assistance business, and 24/7 I think about investing in multifamily homes.

@Robert Ellis-Multifamily and Built to Rent-Minimum 100 Units - Maximum 450 Units-Markets: Dallas Fort Worth, NW Arkansas, South Dakota, Kansas City, South Carolina and a few others-A & B Class (C Class only in main markets and must be priced very well)- Primary focus: Straight from developer / merchant builder