Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I know, sorta defeats the purpose of an LLC from a financial perspective, but gets the job done.

A common theme amongst those who are successful scaling a real estate portfolio and affiliate real estate businesses is organization skills that allow for systems to be implemented.

In our 'day job' business of remodeling we have stayed just a partnership with an LLC.

If that's the case, check out some of the economic data about what cities have strong job and population growth.

Most of my clients:1) Put 20% down for a conventional investment loan.2) Put 10% down for a second home loan3) Something else, either hard money, DSCR, or portfolio loans.These are the most common ways. 

.- In some markets, that are growing quickly, with great jobs and lots of inbound migration, this could be a little higher - like 4-5% per year over long time periods as demand outpaces supply.

I went from a W2 job to building a portfolio of 500+ units over the last 5 years by starting small and scaling smart.

If you don't, you should get to it and be there now, that's your job as  landlord.

Your neighbor s as Sean mentioned, have a lower tax bill likely due to the fact that they live there and there are laws that prohibit the tax assessor from raising the property values more than 3% per year when it's your primary residence okay, it's also fairly common for your tax bill to significantly increase in the tax year after you purchase it.