The market is at historic highs and could break at any moment.

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.

I asked the question so I could make sure there weren't scenarios like this I wasn't considering.For context, I'm not talking about historical homes in places like Martha's Vineyard.

I will provide some thoughts on the San Diego purchase- virtually all high LTV mls purchases since rates started to hike have negative cash flow at purchase- historically great appreciation- historically great rent growth but recently flattening- prop 13 is great benefit for long holds- laws keep getting less LL friendly.

@Jay HinrichsI try to avoid historic districts at all costs.

Historically, real estate will appreciate over the long term.  

The good news is that there are still investable vacation rentals but historically the barrier to entry is growing each year. 

. -- Unincorporated counties -- historically, the more conservative, skeptical-of-regulation type of government bodies -- have clamped down.

Historic homes?

For example, in Dec I had one property 100% direct/VRBO which historically 40% Airbnb.