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10-28-2010, 07:57 PM #1
Renter
- Join Date
- Oct 2010
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What does it mean when someone says "B properies in C areas"
Im new to realestate and i saw an ad. "looking for B ans C properties in B areas." What does and how is this classification defined?
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12-16-2010, 04:37 PM #2
Fixer Upper
- Join Date
- Dec 2010
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- 34
'A' properties are the ones commanding the highest rents and are typically less than 10 years old. They are mostly occupied by white collar workers.
'B' properties would be those that were built in the last 20-30 years and will be occupied by both white collar and blue collar workers. They may not cash flow as well but will likely be more apt to appreciate in value over time.
'C' properties are usually 30-40 years old and will cash flow well but may not appreciate much. You will also find many section 8 tenants in these properties.
'D' properties are those that are in the roughest shape and have the roughest tenants and will require the most management.
As for A,B,C &D areas, these would follow the same format for the areas you'd find the properties in or rather how the overall neighborhood is or how well its developing and how the crime and employment is in that area. Is the area improving or is it in decline. For instance, a 'C' property could be one that sits in an 'A' area if it were surrounded by high end properties that are appreciating around it. The property may be older and in need of improvement but it could be a good investment if the area around it can help bring it up.
Hope that helps...Rory
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