I think too many people get into this and struggle for too long before realizing that they not been properly trained and potentially could have dramatically shortened the learning curve.   

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.

Poor communicators, poor housekeeping skills, prescription med abuse, big dogs that they couldn't properly care for, damaging, etc.

Gaining valuable insights into the local market.Always consider that Jackson County has a LOT of variability in KC proper and then uniques submarkets of LS, BS, Independence, Raytown, Grandview, etc all with their own local city governments, rules and regulations, each with their own uniques submarkets of their own...Happy to chat and share my knowledge and experience.2.

And actually, if you structure things properly you shouldn't have to worry about the tax implications at all.

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

Instead, shut off the water to the toilet and place a sign on the door "Art exhibit: Non-functioning bathroom."

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.

There is going to be ALOT of money lost in the coming years, and investing does not always make you money - those that are the most successful at losing money are those that provide proper communication to their investors. 

So excited we found tenants, we took our realtors word for it and didn’t properly vet our new tenants.