the Underwriter will ask this question to make sure you're not accumulating investment properties through initial OO interest rates. 3) Lastly, if the property is within the same neighborhood or nearby your current residence, you will asked by the Underwriter to justify that the additional purchase is the same area is not an investment property, this one is easy, just make sure you're either buying a larger property and say your family is growing, or if you're buying a smaller property than what you currently live in just say you're downsizing to a smaller home and they'll be satisfied with either answer.

I typically buy in B-/C neighborhoods where none of my multi-family rentals have AC.

Make sure the property management company you hire has experience working this type of neighborhood. 

The older homes in my neighborhood pay over 2K, while mine is under $500 because of the increased elevation. 

I have some neighborhoods where I know the 'gorgeous big trees'  can be a big problem and I'm careful to get them out of there before they become a problem.But guess what?

I want to show that you can find cashflow in nice areas of the north side if you look hard and get creative.I just brokered a 3 unit in the neighborhood SW of north and western intersection in walking distance to the 606 trail and Western Blue Line stop.

Here's what I'm working with...The property is a late 70's 1800 sq ft brick single family that sits on 1.75 acres surrounded by newly developed 1600 - 2200 sq ft homes which are zoned 4 homes per acre in what I consider a B+ neighborhood.  

@James Wise  Per your request.Coming out of the late 1800s most of the major west coast cities that we know and love like LA  SF  PDX SEATAC were all subdivided by the same engineering firms  at least SF and Portlandia were.. this led to land speculators in the day going out into the Western deserts and other remote areas.. buying what were large land holdings , Spanish land grants and other lands that were not govmit owned.. then in the day you could simply create massive subdivisions buy doing basic surveys off of the base and meridian lines.. which all of the west is surveyed off of... this is called section land.then create these massive tracks of lots.. some were like up in the apple valley, Lancaster,  Barstow type areas mainly 5 acre tracts.. and were done on a grid pattern.. streets in ( mapped but not built)  and of course spiraled out of a small little town off the railroad track or the few roads that existed in those days.. you took your map and recorded it at the county, county was happy they just got 5 thousand lots they could send out tax bills on..

I know for single family homes, it would go by comps in the neighborhood, but apartments I know are different.

If you don’t mind my asking, what neighborhood did you decide to buy in and why?