Down the line you should be ok with proper pricing and rising rent over time.

Proper research, budgeting, and a well-thought-out strategy are key to minimizing risks and maximizing returns.In the end, BRRRR is an active investment strategy that, when executed correctly, can lead to long-term wealth creation, a steady stream of rental income, and a scalable real estate portfolio.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

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.

Also something maybe that isn’t clear to people outside the dc area, is the actual type of person who buys a home in the area, dc metro has been an expensive area my entire life, most people who own a home either bought a while ago and have extremely low payments, or almost certainly have at least once spouse making good money probably in the private sector or someone who’s a government doctor, lawyer etc. there are of course exceptions and a few areas, counties I do worry about, especially in our cheaper suburbs and parts of city proper.

North side Chicago I have never even had to give a tenant a late fee and none of the tenants I have placed for clients have ever given them issues either, properly picked people pay like clockwork on autopay.

A lot of people are giving you advice without enough context as to what you would like to do other than get a higher than 3% cash on cash return and other than only putting down 20% - 30% as a down payment.Something that is important to know to give proper suggestions is what you want the investment to do for you and how active you want to be in the investment.In general, the more active you are, the higher your return, the less active you are, the lower the return because you pay for others to do that work for you.

It's great for a landlord if the tenant is properly screened. 

Details matter: keep a log (something like an excel spreadsheet) that documents the date, duration, and events that occurred/work you did. 2.

If they pass all of the checks and have the proper income then they have a shot at moving in.