We typically look for C+ areas at a minimum but moreso B- areas or better.

Value: While property management fees typically range from 8% to 12% of monthly rental income, the benefits often outweigh the costs by ensuring a well-managed property with reliable tenants and fewer legal issues.ConclusionWhether you manage your own properties or hire a professional, the importance of property management cannot be overstated.

Typically 5+ units is ‘commercial’ or ‘small  balance’ multi family.

Typically you want to cover all floors and windows and items to remain unpainted like ceiling fans, etc.

To answer your question, 10% seems to be on the low end of what I typically see.  

(And let the excess basis be depreciated over 27.5 or 39 years, as is typically done on real estate without a cost seg.)About @Sang Ji's question "can you do the cost segregation for the new apartment complex you buy through 1031 exchange". 

They have remained at higher than typical levels for much of the year.

: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.

Since it’s a single-member LLC, the IRS disregards it as a separate tax entity, which means there typically aren’t any capital gains or other tax consequences when moving the property to your personal name.However, keep in mind that if you have financed the property, transferring it may impact the loan terms, and expenses like interest and property taxes might not significantly affect your overall tax situation.

At Spark Investment Group, we do smaller 506b syndications with a typical $25,000 minimum with capital raises typically in the range of $1.5M to $3M.