Some examples:Section 8 typically covers 80% of the rent (depending on tenant income), with tenants responsible for the remaining 20%.

A good investor friendly agent typically does “driving for dollars,” from what I’ve heard, and they might have a direct line on off market properties.Eyes on the Future - At 19, you can stack up quite the portfolio over the next decade.

: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, 1-3 years for positive cashflow, 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, immediate cashflow and at the lower end of relative rent & value appreciation.

Since this approach relies primarily on true documentation rather than estimates, it is typically the most accurate.

@Jeff SkinnerRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

These are prime locations, think near downtown or popular tourist destinations where demand for short-term rentals is typically high.

Instead of 40 houses cash flowing $200 each or $8000/month, you buy 10 houses and pay them off for a cash flow of $10,000/month with 1/4th the headache.People don't understand the amount of time, energy, and stress involved with managing a lot of doors, especially if they are lower-class properties typically needed to generate cash flow.

Specifically, I’d like to understand:How to evaluate motel operations and what metrics are most critical.Best practices for managing or outsourcing day-to-day operations.Thanks in advance for your insights—I’m looking forward to learning from the amazing investors here and gaining a better understanding of this space!

I’m in CA also and paid cap gains on huge profits to the tune of 28%, which included CA state cap gains.

These are what we call "A-class" markets—areas with strong fundamentals, high demand, and typically excellent long-term appreciation.