We are asking the current tenants to leave as the property is not in optimal condition we like to have our rentals and we would like to fix it up to increase value and rents.

How did you add value to the deal?

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.

We discovered problems that required a lot of work and significantly reduced the property’s value, forcing me to lower the price.

@Zach Denny - I agree - chances are the institutional lender won't be comfortable with an owner-financed 2nd and 100% combined loan to value.

Tampa has a lot of value-add opportunities in gentrifying areas where you can snag deals that balance growth and stability.

Current “As Is” Value: $625K.

.- Value-Add Investments: Beyond cosmetic upgrades, think about adding amenities like solar panels, EV charging stations, or smart home tech.

One possibility is building a duplex in Peoria, while it's not the best rental market, getting a duplex at a possibly much cheaper price than market value is extremely appealing.

Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit.