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.

I was pretty leveraged with my HELOC, 401k loans, etc. but I could have been even more aggressive.I only have 12-doors though.

The property next door to this one is I own 50/50 and went out to cut down a tree that our tenants said would fall on the neighbors home.

I would encourage house hacking, you won't be cash flowing but it helps you save while you get your foot in the door with low DP.

So the fact you’re already thinking about using your sweat equity to add value is a great sign.Even though you found this deal on your own, a solid realtor can do more than just open doors for showings.

Currently the portfolio is 5 properties, 7 doors, valued at $1.2M with $558K equity.

Look for warning signs like wall cracks, misaligned doors, or uneven floors, and always get an inspection from a structural engineer (not just a foundation repair company).

Hi Max, being "caring" and having a conversation with them at the door can save you.  

Learn the trade at your door step and max.

much better. we build a stacked triplex in Columbus Ohio and our costs drop significantly to $130k a door on a stick framed with profit in the urban core.