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.

If you are not going to leave there at all, and you can't do Bill 23 or have any value-add to get to positive cash flow, then NO, don't do it. 

When you analyze a deal as an LTR so you can pivot if necessary, you are in a much stronger position.

I was in the position of considering renting to someone with a pittie.  

I plan on my income jumping a fairly good amount, especially since I will transfer to working a full time position.

No offense, but absolutely, positively in no way shape or form would I, as a lender of over 30 years, provide a loan to someone with no out of pocket capital.

Thanks for your positivity.

Lastly, if the tenant does become delinquent and we have to file a claim with Rhino Insurance to collect their deposit, we're adding to the financial woes of that tenant and putting them into an even worse financial position when they wouldn't have qualified in the first place.Thoughts?

I would suggest shopping it around a little more until you find a lender that offers reasonable terms and has a positive reputation.

If you’re positive you can get in and out fast or refinance smoothly, maybe it’s a tool worth considering.