The lower the price the more I would be willing to do some fixing up.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases: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 goal is for them to prove a track record of payments and leverage that to refinance with a traditional lender into a lower rate.

Riskier assets are lower percentages.

during the 2000s before the crash we got up to about 3 mil a month in lower balance high profit loans and were between 30 to 40 mil out.. we originated all our own loans.. do not trust brokers all my worst deals came from them.. this took about 12 people..

@Kyle Carter just because a building has all section 8 tenants doesn’t necessarily mean that the cap rate will be higher on exit but it might attract a buyer(s) that are focused cashflow and not appreciation; therefore a lower price to juice the yield.One of my non negotiables if I were you would be to only buy in an area that is desirable.  

Not sure if it had something more to do with pandemic response to move to lower priced areas or what the motivation was.  

Summit county (Akron) has a much lower sales tax rate (6.75%) than Cleveland (Cuyahoga at 8%).The MLS in Akron shows homes at similar if not cheaper homes but for a good reason.

Purchased a property that needed some work and on the lower end of the market so homes were sitting.

I just know I don’t have the knowledge yet to find a deal and a lower price point is appealing for sure.