Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Negotiate with CreditorsIf you have missed payments or have accounts in collections, contact your creditors to negotiate a payment plan or settlement.

If not leave as is and collect rent and @Jay Hinrichs mentioned as long as not full of rodent or bugs then I would leave as is.

So you are gonna sue and spend thousands to collect maybe a few hundred in penalties?

But the previous owner only collected cash so we didn’t have an income to draw off of for appraisal.

Under Texas Property Code section 92.019, a landlord mat not collect late fees for failing to pay any portion of the rent unless the landlord provides notice of the fee included in the written lease, the fee is reasonable, and any portion unpaid has been longer than 2 days after the rent was due.

Forgot, if you get a 3rd party doing the billing, make sure they do collections also. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.