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.

The most important thing is research.

Pulling $110K in equity from a property you originally bought for $108K is a huge win—and a perfect example of why long-term investing pays off.Your reflection on remembering where it all started is so important.

If your overall income, including capital gains, is low enough (under $150k), you may still benefit from rental losses.

Almost everything can be done virtually these days including many property management functions. 

While the price is important, a successful investment is driven by the ROI.

Comments are disabled, yeah I know they mostly attract trolls, but maybe they would include some amens?

You Can Only Have 35 Non-Accredited InvestorsRule 506(b) allows an unlimited number of accredited investors but restricts you to only 35 non-accredited investors.However, there’s a catch:Non-accredited investors must be financially sophisticated.They must have enough experience to evaluate the investment risks.From the SEC:“Securities may not be sold to more than 35 non-accredited investors… [who] must meet the legal standard of having sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment.”If you’re planning to include non-accredited investors, make sure they qualify—or you could be violating SEC rules.3.

Opex has been a huge hit to most property owners in all shapes and forms, myself included, but to know to keep your back wide enough to cover your own you'll be able to navigate these waters just fine. 

Our real estate portfolio included multiple Single Family Residential Flips, a commercial building (office/shop space), and a triplex in Canandaigua, NY.