In this 5th episode of the Profitable Powerhouse Properties with the AHI Group, hosts Jonathan Cook and Bryan Jenkins from the AHI Group discuss the differences between A-Class, B-Class, and C-Class properties, renovations situations, the benefits of HOA, the often-forgotten issues with gutters, and the importance of diversifying your portfolio.
Episode Highlights:
- What is a good general range for C-Class nicely rehabbed properties
- Why are the majority of the properties that AHI Group manages A-Class and B-Class
- What are the differences between B-Class and C-Class properties
- How often is Bryan getting 1% on a B-Class property
- Jonathan and Bryan discuss gutter
- What are some nightmares that can occur with gutter issues
- Which problems are property owners responsible for
- Why are the benefits of owning B-Class and C-Class properties over an A-Class
- What are the long-term gains for a property that appears to be breaking even
- It doesn’t only matter what you invest in a home, it is also about the market pull
- What are the benefits of an HOA
- What is involved in paying HOA dues
- Curb appeal’s value is more than just marketing for your property
- Have good partners and systems in place
3 Key Points:
- C-Class properties in the areas of AHI Group are typically $70,000-100,000
- B-Class properties are the sweet spot for equity gain and monthly cash flow.
- Statistically, maintenance numbers for C-Class are higher than a B-Class, which is higher than an A-Class.
Tweetable Quotes:
- “One of the things that we focus on within our management portfolio is diversifying that.” – Bryan Jenkins
- “What we were doing was we were buying A-Class properties to do lease-backs to corporations and fully furnish those and provide lawn service, chemicals and maid service.”– Bryan Jenkins pppwithahigroup.podbean.com
- “An HOA means you have a governing body in charge of your neighborhood.” – Bryan Jenkins
Resources Mentioned:
- Check out our website ahiproperties.com
- Twitter: @ahiproperties
- Facebook: AHI Properties
- Linkedin: AHI Properties