We can get you a lower rate at a cheaper cost than Wells Fargo.

But in a rooming house, they pay a much lower rent cost, and get the benefit of a professional cleaning crew doing common areas, kitchens and bathrooms, free high-speed Wi-Fi for their streaming devices, etc.

I threw out a lower number and they balked. 

: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.

It feels going deep is less risky, which I like, but are returns lower to match the lesser risk...

With rehabs you can get to significantly lower purchase prices and typically the lender will just be looking for  a100k+ ARV so that you can refinance out of the loan once rehab is completed (100k as-is value is pretty standard for DSCR loans).With rehabs experience is the biggest factor to LTV and rate so partnering up with someone for the first one or first 3 will get you significantly better terms (working in the same area can also provide benefits in terms of LTV).

My A class that I own I self manage I have a RE agent that puts them up they find a tenant I require 700 plus fico so that weeds out 90% of renters and then I set them up on auto pay and if they have an issue we send handyman.. to be fair my units are basically new construction and townhouses in HOA's in the Desert ( vegas) so there simply is not a lot of maintenance. there is A class in every city its just that investors get so focused on  positive cash flow they dont buy those for rental purposes so they miss out on the best rental tenants.. the higher the cash flow on paper the lower the quality of the units.. its a fact..

One approach could be to reach out to tax professionals in other states with lower costs of living, as they might provide quality services at more competitive rates.

They have much stricter reporting requirements (audited financials and semi annual reports), as well as a much lower barrier cost of entry.

Here’s why:Cash Flow: A 4-plex offers four rental incomes versus two in a duplex, which can significantly boost your cash flow and help cover vacancies or unexpected expenses.Financing: For a 4-plex, you can still take advantage of residential financing (which tends to have lower rates) compared to commercial loans.