: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.

They're like bank & credit union loans... but with (i) more leverage, (ii) more interest only, (iii) [typically] lower rates, (iv) non-recourse structure, and (v) no deposit requirements / no requirement to start "a relationship". 

Investors will sometimes choose the second option / 40 year term because during the 10 year interest only period, the mortgage payments are lower compared to a 30 year fixed so more rent is going into the investor's pocket.

This lets you access your home’s value without touching your savings, and the rates are typically lower than what you'd get with a hard money loan.Many first-time flippers also turn to hard money lenders, who focus on the property’s value and the flip's potential rather than your personal credit.

You can offer to lower it if it goes back down.  

Generally, private lenders offer more flexibility and lower fees than hard money lenders.

Vegetation and Tree Removal are crucial especially for these lower end properties 

If you do enough BRRRs over time you'll see a few values come in lower than expected and a few come in higher than expected.

Hi Jonathan,Given your situation, a good approach would be to structure the deal with interest-only payments for the first five years, which will keep your monthly costs lower while you build equity.

The order requires the county to roll back 2023 assessments to either their current level or a 15% increase from the last assessment, whichever is lower.