Class A,B,C,D
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Class A,B,C,D (by Jo [CT]) Feb 17, 2024 1:56 PM
       Class A,B,C,D (by Sisco [MO]) Feb 17, 2024 2:41 PM
       Class A,B,C,D (by Jo [CT]) Feb 17, 2024 3:06 PM
       Class A,B,C,D (by Sisco [MO]) Feb 17, 2024 3:19 PM
       Class A,B,C,D (by Jo [CT]) Feb 17, 2024 3:45 PM
       Class A,B,C,D (by Roy [AL]) Feb 17, 2024 4:38 PM
       Class A,B,C,D (by DJ [VA]) Feb 17, 2024 10:17 PM
       Class A,B,C,D (by Robert J [CA]) Feb 18, 2024 1:27 AM
       Class A,B,C,D (by Jim in O C [CA]) Feb 18, 2024 10:33 AM
       Class A,B,C,D (by Ray-N-Pa [PA]) Feb 19, 2024 4:07 PM

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Class A,B,C,D (by Jo [CT]) Posted on: Feb 17, 2024 1:56 PM
Message:

I read about different "classes" of housing on this site. I'm curious what constitutes a class A house?...B?.....C?.....D?

I makes me wonder what category my houses are in.

Just curious how it is decided. Is it about the house, or the neighborhood?

If you have a not so nice house ,but it's in a good neighborhood ,how would that be classified?

Interested to know what your thoughts are and how you classify your rentals. --68.191.xx.xxx




Class A,B,C,D (by Sisco [MO]) Posted on: Feb 17, 2024 2:41 PM
Message:

This from multi family perspective:

Class A

These properties represent the highest quality buildings in their market and area. They are generally newer properties built within the last 15 years with top amenities, high-income earning tenants and low vacancy rates. Class A buildings are well-located in the market and are typically professionally managed. Additionally, they typically demand the highest rent with little or no deferred maintenance issues.

Class B

These properties are one step down from Class A and are generally older, tend to have lower income tenants, and may or may not be professionally managed. Rental income is typically lower than Class A, and there may be some deferred maintenance issues. Mostly, these buildings are well-maintained and many investors see these as “value-add” investment opportunities because the properties can be upgraded to Class B+ or Class A through renovations and improvements to common areas. Buyers are generally able to acquire these properties at a higher CAP Rate than a comparable Class A property because these properties are viewed as riskier than Class A.

Class C

Class C properties are typically more than 20 years old and located in less than desirable locations. These properties are generally in need of renovation, such as updating the building infrastructure to bring it up-to-date. As a result, Class C buildings tend to have the lowest rental rates in a market with other Class A or Class B properties. Some Class C properties need significant reposting to get to steady cash flows for investors.

--149.76.xxx.x




Class A,B,C,D (by Jo [CT]) Posted on: Feb 17, 2024 3:06 PM
Message:

Sisco, that is a good example.

I think "updating" can be a relative thing. I have a multi built in 1900. No granite countertops, no stainless steel appliances. There are Claw foot tubs in the bathroom, separate pantry's to wash and store dishes, water pipes running along part of the wall in the kitchen...well maintained.

Has what I call "quirky charm". Most love it, some want "newer" additions. I have read ads with "Updated" items, and the rent has been "updated" too, (a lot!)

I have mostly college students. There are some large complexes around that rent for more than 3 times for a room than mine does, but they must have the ameneties.

I would "classify" as "nice, clean, safe, close to everything in town, close to school.

Guess I'm in a class by myself lol!!!

--68.191.xx.xxx




Class A,B,C,D (by Sisco [MO]) Posted on: Feb 17, 2024 3:19 PM
Message:

Keep in mind the classifications are from the investor perspective.Professional management is a prerequisite of Class A. --149.76.xxx.x




Class A,B,C,D (by Jo [CT]) Posted on: Feb 17, 2024 3:45 PM
Message:

Interesting about the professional management angle....most of the complexes definitely have a management company, but there are lots of negative reviews as far as the response from the management. I'm sure many are run efficiently though.

I am very hands on and my tenants appreciate that, but then again, I'm small potatoes!

--68.191.xx.xxx




Class A,B,C,D (by Roy [AL]) Posted on: Feb 17, 2024 4:38 PM
Message:

Jo in CT,

Sisco's descriptions of A, B, C were good, however, there are Class D and F also. I use the class letters to refer to neighborhoods and the residents who live there more than anything else.

Class D is a neighborhood where most residents are tenants and the majority of the houses there are owned by landlords. The primary source of income for most residents here is a combination o low paying service jobs combined with some type of government entitlement or disability income.

Class F - this is a neighborhood war zone or a slum type ghetto. All housing here is either owned by slumlords or its run-down government housing projects. Prostitutes and drug dealers ply their trade in broad daylight here.

Many investors do not see any difference between a D & F neighborhood. I see huge differences. I will buy houses in a D hood any day but never in an F hood. --71.207.xxx.xx




Class A,B,C,D (by DJ [VA]) Posted on: Feb 17, 2024 10:17 PM
Message:

Sisco & Roy gave some pretty good descriptions

Regarding "professional management": someone who gets paid for what they do is a professional in that field. Who here is not a professional manager? Of course, there are different levels of competence & I would argue that being a larger R.E. management company does not mean you are better at it. Just saying

Like Roy, I also think of it as the type of neighborhood. Of course, it is relative to what is nearby, in that city or county.

Another way to evaluate the neighborhood is by the cars there. Such as:

Class A - you will see late model, more expensive cars that are clean, waxed - detailed every week. Cadillac, Mercedes, Sports/muscle cars,

Class B - 5 - 15-ish year old cars that are maintained & running, but not fancy. Ford, Chevy, Toyota, Honda,

Class C - will have older cars, not maintained. Parked on the street for 2 months with a flat tire. Public buses will serve the area. You would have to go a little distance to get to stores.

Class D/F - Very old, broken down, up on blocks, bullet-ridden cars, and many of the residents using public bus transportation or taxis. There are no stores here - hardly any business.

You may see some class A cars in a c/d/f area- driven by the drug dealers & pimps.

--68.229.xxx.xxx




Class A,B,C,D (by Robert J [CA]) Posted on: Feb 18, 2024 1:27 AM
Message:

In Los Angeles, there are many sub-cities withing all areas.

When adding a Grade to Property, you have to consider the:

Location

People

Crimes

Employment

Growth

Age of structures

Transportation

Desirability

Convince of shopping--food, cloths, etc.

Parks

Police/Fire

How close are medical/hospitals

Having said that, let me give you some examples:

"A" just because I have some rentals in Beverly Hills, does not make them an automatic "A". Like A, A-, B and B-, after all this is Beverly Hills

"B" Woodland Hills, West Hills, No-Ho (North Hollywood Theater district, Sherman Oaks, Tarzan -- all good parts of the San Fernando Valley of L.A. But there are border line areas that can range from A, B, B- and C. If you factor in shopping, transportation and crime, some are ever a "D".

Tomorrow I'm going to show a unit in North Hollywood via Some online ads. A 1 bedroom that could range from A, B, B- and ever "C". But I up grade the property with every new tenancy, keep it in top shape. Provide new paint, wood flooring, window coverings, new appliances, etc. This is the end of a Cul-de-sac. Rent is this area ranges from $1,600 a month to $2,400 a month. When people come an see the ground, green grass, scrubs, sitting area with table and chairs. Fruit trees. Autmatic sprinklers, etc with lots of charm. NO COMMON WALLS between units. I'm asking $1895 with off street parking. Tomorrow I will have 3 people that each want this apartment. Owner is a contractor who repairs any issue withing days, if not hours.

So this are is only a "B" because of crime. But the property is "A" and shopping, parks, police and fire are withing blocks. So I call this a step from perfect but at a budget price. Not $2500, but only $1895

--47.155.xx.xxx




Class A,B,C,D (by Jim in O C [CA]) Posted on: Feb 18, 2024 10:33 AM
Message:

Robert J at $1895 that is a bargain. My 3BR 1.5 BA condo with attached 2 car garage goes for $2800.00. --146.70.xxx.xxx




Class A,B,C,D (by Ray-N-Pa [PA]) Posted on: Feb 19, 2024 4:07 PM
Message:

A class A place will have a class A tenant

Class A - Doctors, bankers college professor or attorneys

Class B - Professionals, typically these folks wear a tie or seasoned tradesman owning their own business. Managers, shop owners, plumbers, IT professionals and teachers

Class C - Blue collar workers. Prepared retirees

Class D - Folks who typically don't work for periods greater than a couple of months at a time. There is routinely a government funded source of income.

Class E - uninhabitable and ideal for squatters

--24.101.xxx.xxx



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