Essentially, you have to spend your own money and complete work on the property prior to reimbursing yourself out of the escrowed rehab budget.The draw process typically takes 5-7 days from initial request, to scheduling an inspection, and finally for the lender to wire those funds to you after your work is confirmed by the inspector.

Similarly, the markets with the best initial cash flow typically have poor historical appreciation and rent growth.

Collections agencies typically take 30-50% of what they collect. 50-70% of something is better then 100% of nothing IMO.  

To answer your first question, since we warranty the purchase price less payments received, our performance warranty is only applicable until an investor's investment principle is no longer at risk (which is typically for the first 4 to 7 years from when they purchased a re-performing note).

@Sean MacDonaldI think you summed it up in your observation of your clients, it's very typical here in the valley that the number of transactions will decline right before an election and then those buyers just like your clients will get back in and the number of transactions will pick back up in the months following the election.

I'll typically pay to "boost" the listing on Facebook to get more exposure, which has proven to be worth the $5-$15. 

These are typically located in lesser-known vacation rental markets, but have very strong fundamentals and great room for improvement. 

Skipping ahead many months, I'm happy to report that half of the equity wiped out by the lien was recovered which made a big difference for these folks who were looking to retire.We purchased the house when my wife was 8 months pregnant.

: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.

Is a roughly 3% premium to Treasury's typical for a commercial/DSCR loan?