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.

Operating is where you collect the rents and pay expenses.

You can buy a solid duplex with $1800 rents and no owner expenses for $350-$4325,000 that will appreciate and build wealth and cashflow.

We are looking into getting a fixer upper and plan to rent out our original residence ( Zillow says we can get $2700 median rent in our area ) while moving and fixing up the new house.

There are situations where it is more beneficial to end the current lease and start a new one (ability to change lease terms, rent amount etc), and there are situations where it makes more sense to just do an addendum.

My condition was that they rent the house for 1% of the costs and sign a 3 year lease.

The 3 units one is renting out for 950, 700, and 650.

If your goal is to grow faster, buying rent ready properties isn't the usual way to do that if you have limited funds to start with.

How do you value a apartment that will be rented out to primarily section 8 tenants?  

I would hold at least one year and rent out as short term rental,might ending up keeping for 2 years