I need help analyzing this property.Address:2542 Glenn Terrace, Mount Penn, PA 19606Asking Price: $209,000Taxes: $5087 (they are really high in my county)Renovations: $10K-$15KMortgage: ConventionalCredit Rating: 712 median1.

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.

Most of my CFO clients that are in residential development are looking for IRRs (usually over a minimum 5-year period) in the high teens and the commercial developers are looking in the low to mid 20% range.

There are a lot of high character folks who get sucked into garbage Co-GP style guru programs.

Sorry you had to go through all that Spencer but thank you for posting for all of us considering paying their high price tag for services  

If you decide to use them as managers who take a % of nightly rates, I HIGHLY recommend asking them about ALL fees that they charge - including the fees that "Guests pay". 

If one is a high W2 earner, real estate is not the place.

@Greg Kurzner Thank you for speaking highly of me.

Now that is a very high level example but the appreciation is not gone if that makes sense you will capture the ballpark same appreciation if the properties are comparable.  

I would highly recommend looking into syndications!