: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.

This is my first major rehab and I'm trying to be creative about stretching my budget.

The ability to see the major issues before you buy is key especially when buying dilapidated early 1900's homes.

Since you just starting to rent it out I would include the down payment and any major repairs you have done.

We don't want to bring on every owner or every property unless they fit within our target market, so, I do the far majority of the sales - this is our check and balance.

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

Fortunately for our 100+ house community, the fire department was already on site battling the brush fire and about a dozen fire fighters frantically extinguished the 4 or 5 roofs burning.This is insignificant compared to what has happened in LA, Palisades, Malibu and Altadena however having lived through Hurricane Andrew and many other major storms even this experience was drastically more terrifying and chaotic. 

It’s getting close to other major metros in the rest of the world where it’s getting difficult for the locals to buy a home.

I know this is not all owners, but a majority fall into this camp.

Now we're seeing major disasters in densely populated areas and insurance companies can't maintain their profit margins.