I’ll try to answer some of your questionsonce a note has matured the note holder has the legal right to call the note due - with proper notification to the debtor.  

. - Agreed, sounds like you don't have the time to properly vet candidates.

What measures have you taken to ensure some safety and deter local nuisance?

He has compassion and heart and ensures that his clients are well taken care of and that the rehabs are pristine.

Just ensure you're transparent with the seller about the process and keep communication open. 

Operations- tenants refusals, either cull them before they get to you by requiring autopay as an example, document on their application why you refused them, make sure your facilities are maintained properly and no safety hazards exist, etcLLC.

Ensure you account for HELOC interest in your cash flow.

: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.

Hi @Philip Jones,For the refinance aspect, the main factors will be the FICO Score, cash flow of the property, and as-is value.A Higher FICO will let you get a larger loan size and lower interest rate.Good Cash Flow will ensure that your property will be profitable for you and enable you to get the max loan size that your FICO allows for.The As-is Value will play an important role in making sure that you meet the minimum requirement for a DSCR loan of 100k, but also in making sure that the rehab work that has been done provided significant value add.

With the sale leaseback ensuring income immediately, plus your plan to generate additional NOI through the storage yard or expansion, the numbers look strong.