THat said there is a ton of positive value in the offerings. 

If I were in their position, I’d likely do the same.

Also, as others have mentioned, most institutional lenders do not lend to LLC's and have never given me any good reason for their position, since the owner is always required to assume personal liability via a personal guaranty. 

Ideally we hold forever (cash flow positive) or we 1031 to another property.Thanks in advance.

Close fast, stay in comfortable LTV positions is the name of the game.

With lower entry costs and solid growth potential, he was able to snag a couple of properties that started generating positive cash flow pretty quickly.Sometimes a new environment brings new opportunities.

It is easy to point out areas where things might go wrong, but I am more curious about the positive side.

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

: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.

A high-quality tenant typically has a stable income, good credit history, and positive references from previous landlords.