He teaches people to build small, but productive, portfolios.

Hello BP Community, it's been awhile since I've last posted or have had downtime lately.

I have been working with investors in my area and partnering on deals for the last 4ish years.

Building our PM company has been the most rewarding experience of my career. 

I have been following BP on YouTube for a few years and have been investing in real estate for the last 3 years. 

: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+ (roughly 5% probability of default), 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 (around 10% probability of default), 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.

Why would you literally wait until the last minute, when a flat tire or difficulty finding a parking space be the difference between keeping and losing your home?

Another thing to think about is what kind of turnover you have, what condition the building is in. 

We track the stats every year and last year there was $28 Billion in seller financed paper recorded across the U.S.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.