This approach could keep things straightforward while accommodating their need for housing.

Let me know if you need help refining your approach!

Both approaches have merit.

A business partner approached me about it, and I negotiated the deal based on CAP rate.

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.

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.

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.

The lone ranger approach works for some people, and I'm certainly not saying this is the only way or the "right way" to success, but for me and others in the community, it has been valuable and rewarding.

To hit $1mm net equity in 5 years you have to approach from mainly an appreciation approach.  

I liked his perspective, his approach to investing and his “voice”.