Drugs and hookers of course...

I asked many mortgage brokers to help me get financing, but as soon as I mention that I was indicted by the Feds 3 years ago on drug conspiracy charge, they all put heir tails between their legs and run.

Some examples you might find are: drug and alcohol abusers, women (with children) who were abused by their male partners, mental health program participants, senior citizen housing, those with physical disabilities.

The other one seems to have a drug problem and has been one I'd like to get rid of anyway.

Will use professional management company to manage it and keep it under tight control (no drugs, etc)My partner and I are not experienced in large deals like this.

Jk but ive heard something about if your house has drugs or maybe its just if there was a drugdealer in it, there are severe consequences to the landlord.  

It's not like there was a gang or drug dealers in a run down house shooting out the windows at everyone, it's just one crazy guy who ended up shooting himself in the end so I don't think it's a neighborhood issue.  

I drug my feet too long and the property got snatched up by a 1031 exchange.

Just like I think Kahala area were you live is ripe for the same metrics.. buy a tear down at 1 to 1.5 and either do a full blown reno or new build and exit in the 3 to 5 mil range... just don't know how long those take.. the ones in Chicago because of a lack of inventory sell before they are done so risk is alleviated and I can get bank vertical in Chicago as opposed to paying private money rates.

I am very familiar with this rule of thumb, however it seems so misguided and arbitrary and takes into account almost nothing other than a base rental assumption.Say you've got a 10 unit building and most tenants are drug addicts and are paying below market rents and the property is old and serious repairs are most likely imminent, you are probably looking at 90% of your rent for expenses.