As a broker in a wholesale market, I "buy" a loan from a lender at a discount and mark it up for my profit.

All of the multifamily I have looked at in my area are not profitable due to prices being much higher than rent currently.

In southern Florida I fund and profit / loss is 50/50.

I'm managing D class properties with a property manager and am making a profit. 

Like I see how it could work in a perfect world but i cant wrap my head around the idea that I could be making a profit if I still don't actually own the house and still have to pay down all of the loans.

After analyzing the potential ROI, we negotiated a fair price of $58,500, ensuring room for renovation costs and profit.

: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.

When you look at a property make a list of all major capital expenditures roof hvac etc.

Marie, Please keep in mind that when you see people referencing with these funds it's because they are invested in these funds, bought the sales pitch hook, line and sinker and are being told by the operator, "don't worry about the market, we're experienced and conservative so you'll get all your money back and a tidy profit.

I can't see but maybe the wooden piers are sitting on sonotube concrete piers embedded in the ground which might change things.What I would do is get with a few major local lenders and maybe ask them what they would need to make sure the little studios (that is what I would call them, not yurts) are maximized for value.