A-class neighborhoods are primarily owner-occupied single family homes. The school systems are top notch. They are expected to achieve lower returns compared to B, C and D neighborhoods, but this is offset by higher quality tenants, along with less management involvement.
B-class neighborhoods are going to be made up of a variety of both rentals and owner-occupied homes. Here you still see more owner-occupied homes overall. You will be able to find single family homes that need little work and get solid rental rates. Residents will include some education beyond high school and some blue collar workers. A very solid tenant base will live here. Bates Hendricks, just blocks away, is going through this phase as well, although it is a couple years behind.
Very mature setting. C-class neighborhoods are going to be made up of about half and half renters and owner-occupants. The residents will be mostly comprised of blue collar workers. These, along with neighborhoods in B-class areas, are by far my favorite to acquire property in. D-class neighborhoods are going to consist of more rental homes. Abandoned homes in these neighborhoods are more likely to get broken into when sitting vacant.
These areas are generally not very safe and are highly management-intensive due to tenant volatility. Investors beware: Having local boots on the ground to manage is recommended. Money can be made here, but the risk increases. The Eymans met some other families in a similar situation and formed Oasis for Life , a non-profit group currently working to develop a neurodiverse housing community in Tippecanoe County. Georgia shipwreck's last giant chunk removed from water. Developing a "pocket neighborhood" for adults with disabilities.
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