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.

If you do, you should expect a very aggressive challenge by the IRS.At $350K of combined value it might be worth the cost to get a segregation study if you intend to keep these a long time.

This is all not for the faint of heart but if you want to protect your money you need to get aggressive

That said, if you can afford it and have the reserves, and more importantly think you have a decent chance of increasing revenue with the vacant units then I'd probably go for it.

Land in Texas, especially around Houston area, has been too expensive. 1 acre on decent traffic streets are going for $300 to 500k. 

I think its a decent way to get your portfolio started. 

The tenant deposit covers DAMAGES, not wear and tear. 90% of tenants want a decent place to live, market rent, and a good tenant landlord relationship, and pay rent on time.  

Those are old enough to see some that need extreme updating and could potentially have value add component with a decent spread.

These areas often have 3/2 SFHs in your range, with decent BRRRR potential.

Despite only renting for two months, this tenant's aggressive behavior is creating a hostile living environment for other residents.Specific Issues:He complains about our lack of notice when entering the property during our own move, despite prior notification.He has moved items around the house without permission.His communication has been condescending and confrontational.He installed a surveillance camera in a common area, violating the lease agreement.He banged on the door because he couldn't use the smartlock code properly.Considered Actions:We plan to serve him with a notice to vacate.We are considering having a constable with us when we serve him the notice.Questions:Should we just give him warnings considering that his actions may not improve?