If you want to be conservative, stay around 50%-60% LTV, especially if your cost of debt is lower than your cap rate, as this will lever your ROE.

Lowers your living expenses, plus you have a property you can move out of in a year and do again if you please to.

It was suggested that I use sound caulk for a second layer of drywall, but I think the asphalt board will help dampen the lower frequencies more. 

: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+, 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, 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.

Flippers will have to price in these added expenses to maintain their margins, leading to lower offers on distressed properties.

Obviously the tenant hope of bringing in more occupants (and sharing more common area space/bathrooms as a sacrifice) would be to lower the rental cost per person.  

There are probably many posts that contain similar information to this one, but I thought it would be of value to future and existing investors who are starting their journey.We recently completed rehabbing a duplex we bought for $93k and rehabbed for $75k (in retrospect, we could've negotiated a lower price 🤷‍♂️ - discussion for a different post), hitting an ARV of $190k when our target ARV was $170k.Two things that stood out for me that helped us secure a higher ARV that anyone can use in their next BRRRR were:1) Fix the property to be in the top 75th percentile -> To improve our success rate, we consulted with both our agent and our PMC on what kind of materials and finishes the best properties (highest ARV Comps and Rent Rates) had in the area.

Lower-income renters tend to generate significantly higher maintenance and turnover costs.

My guess is these are properties in lower tier neighborhoods.

Tax loopholes are provisions in the tax code that allow taxpayers to lower their tax liability.