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.

The loan approval is based on the property’s rental income covering the mortgage—making it easier for investors without traditional income streams to qualify.LLC Protection: Many DSCR lenders allow you to hold the property in an LLC.

Hired contractors for the heavy stuff. 

Rents tend to rise over time, amortization steadily increases equity, incomes rise, so the investor has a lot of “cover” for unfortunate timing or operating “mistakes”.Number 2 - periods like 1932 - 1941 and 2008 - 2013 are much harder on this strategy.  

We normally make them sign a lease, so everyone knows what is expected and covers both parties for liabilities.

The rent doesn't cover our mortgage completely, but covers a good 2/3rds!

When you have several rentals the other performing rentals cover everything and you don't feel the stress from the one nonperforming rental.

., which is a major LA State Highway with heavy traffic.

How heavy is your wealth tilted to real estate?

I need financing for my new home, and one of the conditions is I need to find a tenant that will cover my current home liabilities.