- Do you handle evictions and the legal aspects involved?

Negative Cash FlowOne of the most common reasons to sell a rental property is when expenses greatly exceed rental income.

We made a bet: be okay with no (or negative) margins on cleaning and let high quality reviews pay dividends years later.It’s paying off. 

The investor who purchased in 2007 with no cash flow and large leverage would either have to have had the cash to cover 4 years of negative cash flow with negative equity in their property.  

Quote from @John Mason: Other opinion :)  https://www.biggerpockets.com/forums/12/topics/1196948-negat... 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I also want to payoff the property to reduce my debt liability and make it easier for my family to deal with should anything ever happen to me.Are there any negatives to paying off the SBA-HEDCO property loan now?

Additionally, I’ve deepened my understanding of real estate terminology and gained valuable insights into the critical aspects of properties, from structural components to factors to look out for. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, I’m curious—have you found that lenders’ confidence grows after seeing how smoothly things run, or are there certain aspects of the deal where they tend to focus their due diligence?