ARV : $250,000Monthly gross rental income: $4600Monthly mortgage payment: $1100Property description: completely vacant 4 family (three 3 bedroom, one 2 bedroom apartments) in a competitive rental market with housing shortage (large pool of candidates) 7000 sq ft property with massive units, roof was torn off and redone, newer hot water heaters, furnaces, electrical, plumbing.

You could rent but then you slim down your buyer pool.

We have the rare guest that breaks into the pool equipment room and tampers with the pool heater to raise the temperature.

Never go under water.

Consider the tenant pool (neighborhood class), property damage, and think about future capex and repairs.

The result is that Sbux is paying $60 - $70 dollars in rent, but the market rent in the area is only $30 to $40 so an investor who, say, trades out of a small MF property into a Starbucks thinking they're getting a great "hands off" investment could find themselves owning a building that's worth half what it was when they bought it (or less, depending on what the tenant pool is to back fill it).

I have properties with swimming pool and playground so I am well aware of the risk management side but a winter item like this is a new for me! 

Currently sitting in a Kapaa Condo looking at the pool and beach, trying to figure out how this all works around here. 

Properties, for novices, which look good on paper and have good cash flow usually come with C to D+ areas, risky tenants, and a lot of cap ex that you can't see on the internet (basements, roofs, water issues, outdated mechanicals).You are turning a terrible loss into a springboard which is great, but you are trying to move too quickly it sounds like.

: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+, 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, 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.