Hey Arron, I'm sorry for your negative experience!

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Since we're speaking CA, what do you guys think of the idea of purchasing a home in the 600s and then adding a detached ADU to rent both units out and refinancing?

If they speak softly, you do too.

I found some of my properties early on were break even or some months negative.

However, it would be cash flow negative if I were able to assume the mortgage or buy it with 20% down at the market price. 

Quickly addressing some of the comments posting articles about Pace from 2009, I can’t speak to past or pending litigation.

In fact, I’m working on an article about it as we speak to spread the word.

Plus, demographically speaking, assisted living will be the most in demand asset class over the next few decades, further reducing risk and driving increased rates an opportunity.