Don't buy in the roughest neighborhood in the urban core.

For example if there is a Starbucks there, typically there can't be a competing coffee shop in the same plaza. 

First, a lot of people with Section 8 vouchers end up staying in the same neighborhood because it’s where they feel comfortable, where their family is, or just because they know the area.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Fundamentals change neighborhood to neighborhood (i.e. appreciation potential), inventory/absorption issues may exist, rogue city council members and/or registered community organizations can make neighborhoods less appealing with little oversight which impacts value and marketability.

Many of us are out in the neighborhood of $130K.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

Criteria:6 months STR2 bd, 2 ba, Single Level House Furnished with yard, washer & dryer with A/C (inland not near coast)Pet Allowable 40 lb labodor 10 yrs, 40 lbs Red Heeler Mix and 6 lbs catNear VA Hospital, shops, grocery stores (at least 25 minutes commute)

Find an Insurance Broker that can shop the market.

This is my smallest property but the biggest PIA to get lending on since I can't shop it to Fannie/Freddie and competitors.