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've been a broker dealing exclusively with multi family property over the last 20 years.Landlording is a tough job. 

It is your job not to be bitten by one.   

.- Most contractors will cut corners, or worse, once they figure out they won't be watched closely:( Your job will also go to the bottom of their priority list.Monitoring progress is relatively easy: hire that same inspector to go by weekly or before any payments to take a VIDEO of:1) What was done2) Quality of workmanshipOne other thing you didn't ask about, payments to contractors.- They all want 50% down or as much as they can squeeze out of you. 

A client of mine recently invested there and raves aboutt the ease of finding solid contractors who stick to the budget.One piece of advice: before jumping into any market, spend time understanding the local economy, demand drivers (like job growth and population trends), and the landloard laws.

They absolutely hate that part of the job. 

If I sense the buyer is cut from this fabric, I will negotiate extra hard against repairs to the extent they simply walk.

After I cut he and his now wife loose I sold the property for more money 30 days later after we they made fake jim.bakker promises for 45 days. 

The harsh truth is that you are not cut out for this business.

The potential liability from having someone do a job they are not licensed to do far outweighs the cost-benefit.