Multifamily real estate investing offers different levels of risk, depending on the type of property. Class A properties offer the lowest risk, as they are built from the ground up and offer the latest design styles and amenities in desirable neighborhoods. Class B properties have average upside potential and risk, and are typically located in good neighborhoods that sit on the fringes of class A neighborhoods. Class C properties represent the highest risk while offering the highest reward of any multifamily real estate opportunity and are often decades old, needing significant repair, and are located in less-than-desirable locations.