And you're right, with our low default rate and the lower price point on 2nds, buying them back is certainly an expense but not a major one.

One Major thing to consider is this.

Along any major road heading out of the city.

do this just a handful of times and by the time you're 30, you'll have a larger portfolio of rental properties than the vast majority of people.hope this helps.

For now all you are going to see is more of the same because the vast majority of inventory is being held by people with 4-sub 4 rates and they can't/won't want to afford elevated prices and 6+ rates.

I use one unit as my primary residence and have been using the other unit as a mid-term rental (~1-3 month stays) to cover the majority of my mortgage.

I always remind myself that nothing can be as bad as the rent decline in 2020-2021 in major cities such as SF..

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The majority of investors I work with after using this form more or less break even on the rental business which makes it a non event and very little impact to your debt to income ratio.

Not sure if I'm missing something.Look at it from a perspective of even if your tenant is sec8, majority of the time they still have to pay 30% of the rent.