Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Selling- Even if this property eventually turns net positive, at what cost?

Building a trusted team is key, so starting that process as you actively search for your market will put you in a strong position moving forward.

I’m interested in the replies as I’m in a similar position.

Being walking distance to a SUNY campus puts you in prime position—demand is usually strong, especially in college towns where housing is at a premium.

Narrow your top cities, build a local team, and refine your financial analysis to position yourself for success.Good luck!

This doesn’t make me think positive about Norada.

Okay, I have some thoughts that somewhat depend on what your goals are but this is probably how I would structure it: There is two road blocks that I am running into when I am thinking about everything that you want to do: First, there are loan products for everything that you want to do but they are always going to want to be in first position.

I would love to understand, as a first time REI - how to best identify a property that will have cash flow and positive cash on cash return (or even what kind of property)?