And then also do you typically repay each partner their upfront costs from the profits before then distributing profits?

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

It was built using the profits from a new home build I completed in Georgia, so there has never been a mortgage on it.

Thus it's often more profitable to find long-term tenant than squeezing out every rental dollar you can. - RentReady repairs & vacancies between tenants can blow any projected ROIs.2) Warren Buffet - go where others aren't.

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.

Flipping outside your zone can be profitable too, just gotta make sure the numbers work.

A good landlord understands that vacancies & Rent-Ready costs will destroy your cashflow and profits.

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

Is it more profitable than long term rentals?

@Derek Heinz you might be better off finding a major fixer-upper, getting a hard money loan (HML) to acquire it.