Also with stucco siding tile roofs No major weather issues desert landcaping etc etc.. maintenance is quite easy and very cheap compared to other areas of the country.

The cost of living in here is more affordable compared to other major metro areas.

Quote from @Michael Baum: There are a couple of shops that sell standard round over edge granite slabs, 25"x96" prefab, tier 1 for $98 each.This^^^ Every major market now should have a couple of these places around.

That was a major turn off for us.

So far I have gotten the quarterly cash flow as expected, the fund value is kind of plateau'd in 2024 so have not seen major gains or loses in the fund.

There seems to be a glut of STRs in every major market, yet there are RE agents out there telling people that there is demand.There may be demand, but if the owner cannot book their place to cover the costs, how can RE agents be out there telling people that it's a good investment? 

: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.

Many of our tenants are traveling healthcare professionals, so it helps that a majority of our units are close to hospitals.

Of course capex does come into play, but I have a lot of factors on my side including most major components of the property have been replaced already, including roof replaced 2 years ago, water heater replaced 3 years ago, full house was just repiped, septic system is 5 years old, HVAC system replaced in last 7 years, i do not cover appliances with warranty in my rentals, and the tenant I placed in the property is a single dude who works 60 hours a week and just needs a place to sleep.

I know for our business we try to be the nicest, cleanest house on the street and if something small breaks, we take care of it ourselves and only call on the landlord for the major stuff.