The Fannie and Freddie programs handle this issue slightly differently.

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.

That will be an issue if you change it to try and make it contingent on financing.

Asa result, we are seeking alternative methods for acquiring off-marketproperties.While we havedeveloped a robust system for identifying and pre-qualifying potential landparcels, one of the major hurdles we face is reaching the property owners.

Assume a couple of months of vacancy, consider potential unexpected repairs (like HVAC or plumbing issues), and test the numbers with rents dropping by 10-15%.

Some minor plumbing issues but nothing crazy.Selling the place?

It does however give you a degree of independence to choose what you want to do.As your portfolio grows you'll also feel the weight of future capex responsibility more, which ironically points you to growing more cash flow through more real estate.The other issue is that you are chasing a moving goalpost.

Class D is mostly rentals (another tip to look at owner occupied stats and/or if the neighborhood is identified for revitalization), the tenants are outside smoking, they are talking to neighbors and solicitors, it is a completely different vibe that is pretty noticeable just driving through.

We hardly ever get a call or text about any issues.

If there is any issue I call plumber handyman.