A Class Properties
A properties are typically new construction homes in new developments. These properties are in neighborhoods that have good schools, low crime and are generally occupied by the owner. Home prices are usually more expensive which means they don’t cash-flow very well. Investors generally invest in these markets when they think the area is going to appreciate significantly. This can be riskier, because there is never a guarantee of appreciation.

B Class Properties
B properties are typically new construction homes in existing, infill locations or renovated homes. “B” neighborhoods usually have decent schools and not much crime. While most of the homes will be occupied by the owner, there will be quite a few renters living on the street.

C Class Properties
C properties are typically older homes in neighborhoods with lower quality schools and higher crime. We mitigate the risks of C neighborhoods through skillful use of the Section 8 program. Properties in these neighborhoods often cash-flow well on paper because the prices of the houses are low relative to rents. However, these neighborhoods tend to attract lower quality tenants and properties may need more maintenance.

Source: https://www.niche.com/