Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

I’m considering investing in the rental market in Reading, PA, and I’ve noticed some positive trends that make the area appealing.

They sell you the land (you may or may not need to put some cash down) and they carry a note in 1st position.

Lenders will base their max LTV on the appraised value assuming positive DSCR.  

I don't know who these folks are, but it looks to me like they have bitten off more than they can chew.Has anyone had any positive interactions with Inspira? 

I use a point system for screening; applicants get positive points for positive aspects, lose points for negative aspects, and I have a point threshold for each property. 

Look forward to hearing your ideas, growth and positive connections!

They are inherently riskier loans so it takes a baseline level of trust, or legal protections, to ensure that the Gap lender in question is protected because being in subordinate position on title means that if it gets sold for less (via bankruptcy or any number of proceedings), you are more likely to lose your money.You also need to make sure that your primary mortgage holder on the deal is okay with there being a Gap funder.

I’ve been holding since 2020, furnished units for Travel Nurse rentals for 2 years and recently converted one unit to long-term, outcome overall has been positive.

Thanks John the issue is the seating position.