Expect lower LTV limits (often 70-75%) and higher interest rates.

It is often much lower than rent O meter because rent O meter is pulling data from the advertised price, not the rented price.

O course, can't find a tenant and have to beg owner to lower rent due to condition.

Undercharging could mean you end up paying out of pocket or getting a lower-quality clean, which isn’t worth the risk when reviews depend on it.

You can generally achieve better bank leverage and has a lower barrier of entry.

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.

Philly: Grays Ferry (19146), Lower Moyamensing “LOMO” (19148)East Sharswood, further away from Girard Ave (19121)West Kenzo between Front Street and American (19133)West Passyunk (19145)W.

Strategies like living in a duplex or triplex, adding an ADU, or renting by the room can help maximize cash flow while leveraging FHA or VA loans for lower upfront costs.

More equity means lower downpayment.  

@Mickey Petersen I would 1031 exchange into a larger better cash flowing property or whatever gives you a leg up on your wealth building.