It is a favorable equation b/c you get to include rent savings & loan paydown However, I do not understand how you can use loan paydown for the equation.

A quick Google search shows that Class C in Dallas gives a 5.75% cap rate.

The rental is priced over $1500/month and is either in a C/D neighborhood or the property is a dump3. 

So buy in the C D areas, its all about price , Oh and hire a PM co Good luck 

Not sure how we get there.Dan C

I'm looking for multifamily properties with value add potential (maybe replacing the cabinets, painting the outside, adding some plants, or adding new appliances - not a full gut job.) in B or C areas.

Also avoid certain types of rentals-the C and D class are more likely to have higher turnover costs as they attract a lower quality tenant.

Looking mainly Class C or Class B properties - professional, students, small family renters target.

Here are a few I can think of:Make sure you have right of entry and inspections No other occupantsNo pets unless discussedmust keep on utilities at all timesmust change A/c filter monthly unless you are doing soMake sure you have a late fee policyNo additions or alterations to the propertyMust maintain renters insurance

@Austin JamesUnderstand the area, the current tenant base,the median income, is it in a flood zone, the age of the asset, the condition of the plumbing, the electrical wiring, the fuseboxes, the age of the roofs, the age of the mechanicals, the condition of the foundation, the drainage of the property, does the property have a C of O, is there ny environmental concerns such as oil tanks being buried, the current property management company, what are the amenities.These are just a few things to look out for.