Hi everyone, I recently purchased a rental property in a condo managed by an HOA, and I’m dealing with a challenging situation that I’d appreciate advice on.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases: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.

Managing expectations is key. 

Hindsight Critique•Continue to build relationships to increase deal flow•Property manager (Mercer Hughes) is critical to completing renovations and quick tenant placement•Continue to build relationships with private lenders and personal investors•Have cash available to make quick competitive offers Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

You also need to educate yourself on how to manage an investment property.

Hi Kevin,Great question... finding the right property management (PM) company can make or break your investment strategy, especially in Orange County (OC), where the market is both competitive and unique.

For example the first text on Goodin Development's web page says:"We build premium, market rate communities throughout Indiana and help busy professionals invest in real estate, without the hassle of having to analyze properties, manage tenants, or deal with any repairs."1) Where has Goodin Development built or are you building anything whatsoever?

I would recommend keeping them, and gradually increasing rent on par with market increase + 1 to 2%.You could get a better qualified tenant, but they could be worse with money management, property respect, etc.

A solid agent can help you calculate ARV, manage inspections and contractor connections— get quotes and coordinate handymen and vendors post close, provide shopping lists and software suggestions for management or STR furnishing, etc. 

Get knowledge, follow experienced people, and leverage wisely.My Take:If you have two houses, excellent credit, and motivation to build wealth, you can learn to manage your money responsibly.Use HELOC, credit cards, and business credit funding to leverage your cash and buy properties faster.