: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.

While there are definitely house hacks that have allowed owners to live for free and show positive cash flow the current interest rates and prices make those less common.

U simply are not clued into the lending market and the way lenders look at risk thats why you think its a great deal but its only great to you.. most all of us lenders do FAR better than 10% on really nice first position loans with a fraction of the risk.. 

All cash flow positive.

I was conflicted on DR's adamant position against leveraged debt, however, having a degree in finance and economics I believed I had well balanced approach.

Small multifamily, up to 4 units (at least to start), then graduate into larger investments as your portfolio performs positively. 

The art of surprise is always a better position for protection.I’m a big guy so not a lot of people screw with me.

The negative equity position is one reason (there are many reasons) why adding an ADU is one of the worse RE investments.  

i think your best bet is to try to build a network within the investing world so you're positioned as a hub, someone who knows a lot of people, and see a lot of transactions.  

Why is the 50% rule so negative while the cash flow is positive?