The 4 Classes Of Apartment Buildings

Multifamily Mondays

On today’s episode we are talking about The 4 Classes Of Apartment Buildings Class A Class B Class C Class D Class A Newest and shiniest asset with modern amenities Good Location White collar tenants Low cap rate (2-4%) Good buy Preserve wealth but usually generates negative cashflow Class B Tenant mix of white and blue collar workers OK location Built within the last 20 years Has some deferred maintenance Cap rates (5-7%) Good buy for appreciation Class C Tenant mix of blue collar workers and section 8 Building is 30 years or older Cap rates (8_10%) Good buy for cash flow Class D War zone Building is 30 years or older Difficult to collect rents High crime rate Good buy if you have a shotgun If you are looking to become a passive investor on a multifamily project or would like ask me a few questions visit rjonescapitalgroup.com to schedule a complimentary 15 min call. Like me on facebook @roddrickjonesofficial and follow me on instagram at @roddrickjones