A new build should require much lower maintenance expense vs a 100 year old home.Hope this helps.

Given this is where my major operating expenses fell (beyond taxes and insurance), keeping this cost lower, by average, helps my cash flow.I invest in older neighborhoods, so the 2-4 unit properties, typically have single water meter, maybe single electric, and many have radiator heat with a single boiler.  

I’ve had experience with both traditional and private construction loans, and here’s my take:Traditional Lenders: The process can be slower with more paperwork and stringent requirements, but they usually offer lower interest rates.

: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.

The lower entry costs compared to other markets, plus lower taxes, make it great for consistent cash flow.

I had doubts and still have some but now it sounds like those may have been necessary for their loan program after learning why it's a lower risk and FDIC insured requires that. 

from your experience do you know if appraisers would choose closer comps but adjust a different search criteria such as a lower br/ba criteria and adjust the arv by 5-10k on a lower lower room or bathroom count or would they prefer a property further out just to match that criteria. this is probably a case by case basis.

Unfortunately many of the improvement costs do not deviate greatly when you’re renovating a lower cost property  in a particular market compared to a more expensive property  in the very same market which makes it difficult to absorb the improvement costs in some areas.

This affords us excellent cash flow and lower maintenance on a 3-5 year commercial lease.

I would assume the reviews they have with them are on the lower side, and bigger PM companies are known to struggle with attention to detail on properties.