Great credit score 793 and the local bank (who I thought would give me the best rate) came back at WSJ (7.50) plus 1.65.

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.

@Jeff Ryan To be honest, it would depend on your goals.

It depends on what the property appraises for in 24 months,  if you will be able to get home owner's insurance, if lenders are lending and so on.

For rentals in an LLC, most lenders look at the cash flow of the property (aka DSC Ratio: Debt Service  Coverage) and your credit score rather than your personal income.

@Chris Kay it depends what level of renovation you are doing!

Depending on the situation, a taxpayer could offset some of the passive losses with active income.

Just depends upon the situation I guess! 

It kind of depends on the type of properties you're looking for funding on.

Depends on what your goals are. 1-4 units are still residential, so it doesn't really matter how you start.