I’m a 21-year-old college student majoring in physics and economics, I am the president of the Commercial Real Estate Club at my University, and am preparing to enter the investment banking industry after graduation.

This is a small town in tx right off a major highway and could be good for tractor trailer parking...

A majority of our clients are out-of-state investors.

We have a small time manager that helps me to cut costs and worked with my dad for a little, and there are only 5 with a loan, a great majority are free and clear.

And keep in mind in a major metro area there will be investors and investor groups that will out bid you on anything that is remotely a deal.

I wanted to get a breakdown of all of the costs associated with using them to fund the majority (90% LTC, 100% rehab) of this deal.

Although its a tad different but still major Mortgage Fraud group here in Metro Atlanta. 

For example are they making a major mistake?

Major items include clearing overgrown shrubbery, replacing doors, fixing up the deck, getting a pond running again, and removing an in-ground hot tub.

: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.