I’ve discussed the difference between A, B, and C neighborhoods, and explained why my favorite investment properties are in C neighborhoods. But what about D neighborhoods? Can you make a safe and profitable investment in a D neighborhood?
Personally, I do not own any properties in D neighborhoods. In D neighborhoods, you’ll see higher levels of crime. The homes will be more dilapidated, maybe even abandoned. These properties typically need a lot of renovations.
Just because I don’t own properties in D neighborhoods doesn’t mean that you shouldn’t. Every investor has a different strategy. In fact, I’ve known investors who have entirely transformed neighborhoods by renovating multiple properties.
That’s exactly the strategy I would employ if I were going to purchase a D class property. I would pick up multiple homes on the same street in order to make it a better place for my tenants to live.
In short, it’s possible to have a successful investment in a D neighborhood. There’s potential for increase in value, and if you can make a neighborhood a better place, I think that’s a win-win. You might even assist that neighborhood into transitioning into a C neighborhood. I would rather buy a few properties in a D neighborhood than an A neighborhood, that’s for sure.
What is your experience with purchasing properties in the different neighborhood classifications? I’d love to hear your thoughts! Come leave a comment on our YouTube channel.
Ready To Build Passive Income Through Rental Real Estate?
Ready to talk about your goals? We're here to show you the tools and teach you the process to begin earning legacy wealth for you and your family.