Are the occupancy rates, ADR, and occupancy growth trending positively?

The result is a stronger financial position and more flexibility in managing the property.

It will be difficult finding a second position lender on a primary purchase (IF THEY EXIST AT ALL).

Your experience with having a home built by a local builder puts you in a good position to understand the process, and it's smart to ask these questions before diving in.Profit Sharing (50/50 Split): Yes, a 50/50 profit-sharing arrangement is fairly common when the investor funds the entire project.

Taking that money out and anything that leads to more people using the equity from their homes and reduces the friction to that process is not good in the long run.As a NPL buyer who buys 1st position mortgages, we do watch stuff like this carefully as the moment these borrowers get high CLTV's any drop in pricing and change in economic conditions will lead to more foreclosures versus bankruptcies.

I was in the exact same position.

Analyzing marketing materials can offer insights into their branding and market positioning.

From a management position, Evan is correct in that most issues are dealt with on a business hours timeframe vs. 24-7 for anything residential in nature.

: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 am looking to invest about $100,000 on a down payment for a long term rental, but running the numbers on a few different property types I just don't see how it currently pencils out to positive cash flow.