Keep records of the payment timing to substantiate your reporting if needed.This post does not create a CPA-Client relationship.

The plan is to keep operating the property as a PadSplit post-acquisition.

Hello Biggerpockets Community, This is my first post as I am trying to utilize BiggerPockets more. 

@Jay HinrichsI saw Passive Pockets before I post this.

Review what happened and determine why each item was above or below your expectations so that you can properly plan for next year.Review your prior year goals.Did you buy all of the properties you set out to purchase?

Give proper legal notice of non-renewal and get them both out.

If you got a report that someone was smoking cigarettes or cigars outside only, per the rules, would you post the same question?

Quote from @Drew Sygit:My apologies w/my earlier post (below), I was on my phone and not laptop so it wasn't tagging.I will if I may add some additional thoughts...1) The appraisals I've seen in these markets are no where near Zillow estimates. 

Thanks for the post, PaulIt's always reassuring to hear from others w/ similar goals and strategies.

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.