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.

But I first have to positively identify the person with a certain transaction.

There are markets today, even with high rates, that are cash flow positive and do have great appreciation. 

I figured this could possibly put me in a good position for a cash-out refinance when I’m ready to move on to a second property.If I stick within my budget, Philadelphia seems to offer the most housing availability, but I’m concerned about most houses available being in rougher neighborhoods.

There are many ways to take this journey from here however we realized our best way is getting outside investors to come in and help us purchase the property, then give them a fixed % over a period of time or even equity.If anyone has been in this position before, what's another creative way we can scale?

You’re in a strong position with multiple viable options.

I do generally agree that once someone has their person, they are not going to be very open to switching. but if you can prove yourself with someone building that team, you may find yourself in a great position. 

Have others used them and had a positive experience?

Those that cannot weather the storm get wiped out.Having cashflow positive properties provides a margin of safety you just do not have with negative cashflow.Why are you focused on buying in your backyard? 

You can find positive cash flow in both markets.