Don’t fall for the hype of so-called real estate gurus who suggest that you buy distressed properties for investment. If you’re looking for attractive investments, you won’t find it in C class properties. The real returns, in more ways than one, are in Class A real estate.
What is Class A, Anyway?
Class A real estate satisfies the hallmarks of the highest quality in properties. The letter grade assigned from an evaluation of factors that include the age of the building, its location, growth prospects, prospective tenant quality/income, potential for appreciation, rental income potential, and amenities.
The Benefits of Class A Real Estate Investments
Class A real estate costs more upfront, but the benefits of Class A property investments vastly outweigh other classes.
Class A real estate is located in neighborhoods with low crime rates. You’ll never have to worry about your safety when visiting the property for any reason. Your tenants will also enjoy a perfectly safe living environment. Finally, your property will be safe from theft and vandalism. Furthermore, it’s likely that your property will be better protected in the event of a fire and other disasters since Class A properties are situated in areas with excellent public services.
Attract Higher Rents
Class A properties naturally attract higher rents. They are located in desirable neighborhoods, where professionals with high incomes reside. The neighborhoods with Class A real estate are largely owner-occupied, which is where high-income renters also want to live. In the Dallas/Fort Worth Area, where the economy is thriving, investors can increase rents each year. So, not only could you charge a higher rent to start with, but annual rent increases would be consistent with market conditions.
The types of higher income tenants that are attracted to Class A real estate are engaged in stable, professional careers. This stability is a major benefit for Class A property investors. For one thing, it reduces vacancy rates that often occur when low-income tenants lose their jobs. Tenant job stability in Class A real estate also translates into bills that are paid on time and property that is well cared for and never abandoned.
Better Prospects for Investment Return
With an investment in Class A real estate, there is always a huge likelihood that you’ll be able to get a nice return on your initial investment. With Fortune 500 companies moving into desirable areas like DFW, the demand for quality rental homes is high. That drives up both the amount you can charge for rent and property values. Over time, when your tenant has paid down your interest and principal, you could leverage your investment, opt to take out the equity, and buy a second investment.
Talk to an Investment Coordinator
There’s no comparison to the benefits of Class A Real Estate investments, especially when you buy through AREI. Our pre-screened tenants earn a minimum of three times the rent, which ensures you will be able to enjoy all the benefits mentioned above. Book an appointment with an Investment Coordinator for more information about our exciting portfolio of available Class A investment properties.