Also that will give me a lower payment which will allow me to have bigger profit from rent.

: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.

NOTE: A lower OER indicates a more profitable property as a larger portion of the income is retained after covering operating costs.Hope that helps!

Just because Zillow estimates a lower value, doesn't mean people will offer lower than the list price.Also, be careful about the laws with the association and renters.

Most mls listings have under market rents in that area too but would need run comps in exact area, it will likely be a bit lower then west of highway Avondale map area.

Usually only commercial properties with established operational expenses histories are evaluated by cap rates and then those cap rates can also be applied to buildings in certain areas representing higher or lower risk areas.

. -- you can buy lower quality and it won't matter. 

How do you handle situations where ARV comes in lower than expected?

Start with BRRR in some areas that have lower barrier for entry    Pros: Could potentially get to the second investment sooner    Cons: No existing contractor connections.

You may need to lower the rent you are asking for by a bit, but it is way better to have a tenant using less water because they're the ones paying for it, than having them run the water for hours since they aren't the ones paying for it.