Hi Corazon, this is how I would think of class A, B, C neighborhoods:Class A neighborhoods are the prominent areas where everyone wants to live, your most expensive houses, gated community, high end homes, high price points, great school districts usuallyClass B neighborhoods have more rental houses, up and coming neighborhoods with lots of flips, you may also see yards not as nicely kept up, starter home neighborhoods usuallyClass C & D neighborhoods are mostly rental areas, more run down or empty houses, street by street, more crimes in the area, lower prices to purchaseThe classes usually has nothing to do with the age of the house.  

That looked like it had great potential, since purchase prices were significantly lower.

The inverse is typically true for cheaper areas, more distressed opportunities, but lower profits gained per job.

If that same operator projected a lower payout (say 8%) but a higher Pref (say 12%), their performance would be applauded (yet below the Pref) at 10%.  

It is actually your actual basis or current appraisal…whichever is Lower.

This has led me to search for firms specializing in the niche area of cost segregation for lower value rental properties, and what I found was firms who are using internally developed software which allows for such cost/engineering data to applied to basic parameters of a specific rental property to come up with a lite cost segregation report for lower value properties (depreciable basis >$500k).  

We have seen a lot of investors over the past few months take advantage of the much lower RE prices.

The cash flow can appear good on garage conversion ADU additions, but the value being added by ADU additions in SFH areas is even lower than this amount.  

We have sent you a few emails with property options in November of 2019 with no reply and I don’t see any other communication other than that between myself or anyone else on my team.

Lower the price;2.