Quote from @Zachary Deal: A lot of investors utilize the BRRRR strategy in those markets as there is relatively high rents compared to the value of the properties!  

To me, safety is relative.

A percentage of this number is then used to determine what portion is related to the ADU vs the portion of the property you're using personally.

Markets are relatively efficient and the strong cashflow days were 5+ years ago.

Just wondering how you feel about the unique challenges NOLA has relative to economy & climate change (insurance), population decline.  

Do investor relations for them,  or raise money, or underwrite. 

One of the biggest pitfalls is the age of the buildings I'm looking at. 

The BP community can help out a lot with a relatively little amount of info.

To clarify, I had initially put the property under contract but had to back out of the deal due to negative inspection results, specifically related to foundation issues.

: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.