• Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
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Auburn Investment Properties Podcast | A Conversation about Real Estate Investing in Auburn, Alabama
  • Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
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EPISODE 003:
Part 3 of 3 Big Decisions Investors Must Make: Understanding Property Classes​

Categories:
Strategy & Tips

Description & Show Notes:
In this episode, we wrap up our 3 part Foundation series and look at Property Classes, what separates them from each other, and how to use that ranking system to help you know what to buy and what to do with it.  I also go through an example of how I used the "classes" framework to decide on renovations for a 12 unit apartment building and how things went totally sideways with this project during the recession and what I had to do to keep it from falling apart.

Property Classes:

Class A: Best properties, best floor plans, best neighborhoods, but may be too costly to hold as rentals
Class B: Nice, clean, & safe.  Nothing flashy, but easy to rent and maintain.
Class C: Obsolete floor plans, declining neighborhoods, less financially stable tenants.
Class D: Lowest income tenants, but often these have the highest rental returns.

Which is the best class for long-term holders to end up in and which is best for flippers to shoot for?

Links from this episode:
  • Overlook Apartments, Auburn: OverlookAuburn.com
  • Real Estate Brokerage Services: AuburnInvestmentProperties.com
  • Badger Properties, Auburn: BadgerProps.com
  • Real Estate Investor Coaching: BetterREI.com​
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Hosted by:
Chris Kearns

- Investor, Broker
- 2x Auburn Grad
Brought to you by:
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Auburn Investment Properties  | 852 N. Dean Road, Suite 100, Auburn, AL 36830

Website Design & Hosting by Local Profits Group
  • Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About