A real estate investor explains why Class C properties—affordable rentals for teachers, police, and military—outperform during downturns. He recommends buying 45 to 60 minutes from major cities, where remote work lets tenants live farther out while keeping occasional office access.
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So personally, the way I look at this is I want to own Class C properties. Just really quick for anybody who doesn't have it. Class A is luxury gated community, doorman, million plus in a bad market. Even Class B can be a gated community. It's your McMansions, your big, bigger houses. Class C is your working class. I have teachers, cops, military, the working people living there. Class D is a war zone. So I want properties in a market where if there's an economic downturn, a recession, anything, there's more demand on my properties because people in an A or B can downgrade to save money. I want to be a bit out from major cities because remote work is more of an option now than any point in our lives. So people don't have to live where the work is, but they don't want to drive too far. They probably might have to go to the office once or twice a week. So I'm targeting properties a little bit further out as far as time goes, 45 minutes to an hour out.