Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

If the numbers make sense, which usually equates to 10% or better cash on cash and roughly 1% rent to price ratio in an area that has appreciated well recently, I don't care how far I'm away from that market, I try to buy there.

Usually the side effects are worse than the actual thing they are trying to cure.  

But as a tax accountant who sees these things in real life and how they work over long periods, I usually think there'd have been a better way to structure the investment.

Basic apartment say 1 BR, we usually supply refrigerator and range, and nothing else. 

When they move out and i paint over the spackle repairs it is usually undetectable. 

SBA lending has gotten a bad reputation over the past decade.Ask around, and you’ll hear the usual complaints: “Too slow.”

I''ve only heard of ones existing who work on large constructions projects, not small single family home investment properties.Like John mentioned, new constructions or large rehab usually involve the city inspectors, and many assume that if there is a stamp from the city, it must be done correctly.

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

In this market, with interest rates and prices at where they are, they're usually not viable (i.e. don't cash flow).