Investing in A-Location, B-Location and C-Location – This time I travelled specially to Inglewood, Los Angeles to talk about the topic of “real estate location“. A search on the internet returned top results like crime, ghetto and Police Department, but what awaited me on site really surprised me. Everything is changing! And that’s exactly what inspired me to ask the question: how does the location of a property differ, and when and where should you invest? Subscribe now: Lukinski YouTube!
Properties in A-locations promise high profits on sale, but rental income often doesn’t cover the costs ➡️ Primary goal: profit on sale
Properties in B-locations offer positive cash flow and are ideal for beginners, with positive economic development and good infrastructure ➡️ Primary goal: positive cash flow
Properties in C-locations carry risks with poor prospects, low income and high crime, which can lead to falling prices and vacancies ➡️ Primary goal: low purchase price, high yields
Explainer video: Real estate location at a glance
My walking route through Inglewood
From Phil’s Barbecue to the Mega Donut through Inglewood.
In my video I explain what it means to invest in an A-location. These locations, such as in Munich, Berlin or Hamburg, often promise high profits on sale thanks to the constant increase in land prices. However, rental income here can’t always cover the costs (yield), which means you pay extra every month. This is called investment property in an A-location.
A-location stands for prestigious locations in cities like Munich, Berlin and Hamburg
High profits on sale beckon here, as land prices rise continuously
However, rental income often can’t cover the high costs, which can burden investors on a monthly basis
Investment properties in A-locations are known for long-term appreciation, but require patience and capital
B-location: positive cash flow and ideal for beginners
The B-location is a different story. Here, rental income is often sufficient to cover the costs (repayment, interest, maintenance reserve) and even generate positive cash flow. These locations offer positive economic development, a growing population and good infrastructure. B-locations are often found in the commuter belt around A-locations or in individual major cities and are an ideal investment, especially for beginners.
B-location refers to locations in the commuter belt of A-locations or in up-and-coming major cities
Here rental income is often sufficient to cover costs and achieve a positive cash flow
These locations offer positive economic development, growing population figures and good infrastructure
B-locations are ideal for beginners looking for stable investment opportunities
Invest in A-location or B-location?
A-location = profit only on sale (annual net cold rent < cost of the property)
B-location = direct positive cash flow (annual net cold rent > cost of the property)
C-location: don’t underestimate the risk
Then there’s the C-location, and here you really need to be careful. These are districts or cities such as Duisburg Marxloh, where prospects are poor, income is low and crime is high. Nobody wants to buy here, and prices are often cheap. However, there’s a risk that land prices will stagnate or even fall, offering no protection against inflation. Add to that the local clientele, vacancies and possibly rent nomads.
C-locations are risky locations with unfavourable prospects, low income and high crime
Investors might find cheap purchase prices, but there’s a risk that land prices will stagnate or fall, with no protection against inflation
Vacancies and possible rent nomads are typical of C-locations, and potential tenants may be hesitant
These locations require comprehensive risk analysis and can be challenging for inexperienced investors
More details in the video!
If you want to know exactly how to assess the location of a property and decide where and when to invest, check out my new video. I give you all the important information and advice you need to make smart decisions in real estate investment.
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https://lukinski.com/wp-content/uploads/2023/10/immobilien-lage-erklarvideo-los-angeles-a-b-c-analyse-blog.jpg6751200L_kinskihttps://lukinski.com/wp-content/uploads/2024/04/lukinski-logo-real-estate-investment-germany-house-villa-off-market.svgL_kinski2026-08-03 11:05:252026-08-03 11:05:25Real Estate Location Quickly Explained: Investing in A-Location, B-Location and C-Location @ Inglewood, LA – New Video
