Christian Osgood breaks down how Class A properties are volatile and sensitive to downturns like tech layoffs, while Class B assets hold steadier. A Class B property in a Class A area gives you stability with upside.
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I want to get your opinion on Class A versus B and C.
Class A, one of your higher risk profiles. When the market turns, Class A can easily move down to Class B without a huge lifestyle change. So if you have a whole bunch of— example, you have a whole bunch of tech jobs and then there's a whole bunch of tech layoffs, massive effect on Class A. Class B doesn't really notice it that much. Class C doesn't notice it at all. That's kind of the trickle-down effect. So you have more volatility. It's usually a little bit more passive. Also owning nice things, they tend to do really well with appreciation. They're just going to be more volatile. So I'm careful with Class A assets. One of the best things you can do if you buy a Class B property, like true Class B, but it's in a Class A area, it's usually really, really stable.