See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

Hey everyone,I’m exploring the idea of creating a software tool designed to streamline the due diligence process for commercial real estate transactions.

What factors do you think I should consider to determine if it makes sense?

This is neighborhoodscout stats- since 2000: 287.98% or 5.75% annually which is 10/10 nationally- for last 10 years: 125.30% or 8.46% annually which is 9/10 annuallynot bad but not that impressive until you factor in leverage.

I suspect that we will see each of those at play as factors in wins and losses for investors in the coming years. 

Rent or at such other places as may be designated by the parties from time to time.

There are different factors in play.When Ian hit, you had people moving to florida in droves.

This can go so many ways depending on so many factors.1031 cannot defer cost seg deprecation recapture (only straight-line depreciation).This needs to be modeled out with 1031 or outright sale and recapture percentage.This post does not create a CPA-Client relationship.

Politics definitely effects taxes and the economy.I'm sure relevance will vary by location, individual, type of investing activity and other factors.

In your experience, what specific factors do you find most critical during the underwriting process?