Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Today poor means negative cash flow.  

But then their is the real world aspect and they just don't pan out.  

Started looking into tax implications and yeah 6% kills all cash flow we were hoping to get and would have us in negative cash flow (-$221/m to be exact).

You either have to earn extra money via sweat equity (working as your own PM or do the renovation work), or you have to be ok with a negative cash flow.  

I have not had a single one of the negatives people seem to think is above.

@Helena Goyvaerts it will be tough without 2+ years of USA tax returns showing you are profitable.Higher interest rates have negatively affected most lenders and many of them are getting more aggressive with offering more flexible programs. 

Just responding to your negative comment.  

In some cases, after crunching the numbers, the profit margin was so slim—or even negative—that I had to pass on some promising opportunities.Here’s my situation: I currently own two properties—a primary residence and a rental property—both of which have substantial equity.

It doesn't add layers of physical damage coverage or cover things that wouldn't otherwise be covered.Agreed, didn’t realize that was the sole aspect of the question.