Last week on the podcast, I gave an overview of A, B, and C neighborhoods. While I shared many of the differences between these three classifications, I did not disclose my personal opinion. Today, I want to tell you about my favorite neighborhood classification for investing.
You might be surprised to learn that I purchase all of my properties in C neighborhoods, especially if you’ve been reading about investing on the internet. On today’s show, I’m explaining why I love investing in C neighborhoods. I’ll talk about all the benefits of investing in a C neighborhood; you won’t want to miss this episode of Investing in Real Estate!
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If you listened to episode 48, you’ll know that C neighborhoods are older, and in need of extensive renovations. You might read stories on the internet claiming that C class neighborhoods are dangerous or unprofitable. Nothing could be further than the truth!
I love purchasing in C neighborhoods. The properties can be acquired for cheaper than B neighborhoods, and the rents are comparable. Therefore, the return on investment is higher. Simply put, it’s a better value.
A lot of people worry about the quality of tenant in a C neighborhood, but truthfully, I rarely have issues with my tenants. These are hardworking, blue-collar Americans. They are satisfied with the homes that my team renovates. The neighborhoods are quiet during the day, because the tenants are away at work.
It might seem counterintuitive, but A neighborhoods are typically the neighborhoods that have problem tenants. Those tenants have higher standards, and are more likely to complain about insignificant details.
It irritates me to hear uninformed investors spew condescending misinformation about C neighborhoods. I’ve had nothing but great experiences with my properties. To me, there’s nothing more exciting than revitalizing neighborhoods! My tenants love their homes; it’s a win-win situation.
On today’s show, I’ll shed light on the truth about tenant turnovers in C neighborhoods. I’ll also talk more extensively about the quality of tenants in different neighborhood classifications, and I’ll share how to distinguish between different types of neighborhoods.
We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- What is the difference in rent in B and C neighborhoods?
- How can you determine if a neighborhood is up-and-coming?
- Why do A neighborhoods have problem tenants?
- How should you respond to naysayers?
- And much more about buy and hold real estate!