Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I also cover the yard maintenance so it always looks nice.

A few things we’ve been thinking about* Appreciation > Cash Flow: We care more about appreciation in a few years as long as cash-flow can cover occasional cap-ex.* Low Hands-on operation: We prefer minimal hands-on engagement.

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.

Consider yourself fortunate that your property is still covered by your insurance carrier.

Unless they cover this somehow in their contract, this is illegal.Hope this helps!

First, most investors and owners of real estate related businesses are in one or more of the following situations1- they’re unable to duplicate their expertise that drives the ROI and they are at their personal max capacity as to time2- they’re obtaining high ROI by use of excessive leverage 3 - they’re obtaining high ROI by taking excessive risk4- they hit correct timing in the correct market, and this is not necessarily repeatable with any probabilityIn order for an investment or business to scale, we need the ROI (on a risk adjusted basis) to be sufficient to cover a PREMIUM risk adjusted return to passive investors; all expenses of managing the assets and the business, and a significant return to the “sponsor” providing compensation to him making the work, risk and time worth while. 

.🔹 Insurance Challenges – Even when insurance pays, it rarely covers the actual cost to completely rebuild.

So I would caution everyone to make sure the replacement cost for your improvements will realistically cover your actual replacement cost in the event of a total loss.

If the rental income from your condo can comfortably cover your mortgage and leave you a little profit, moving out might make sense.