: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+, 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, 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.

Here is a simple case study of a recent loan:Amount Needed to bring loan current: $18,560Loan Payoff at Purchase: $77,426Acquisition Price: $41,500Property Value: $400,000We acquired this loan in April 2023 as part of a pool of 16 other loans. 

It’s also possible occasionally to find no money down deals but they’re few and far between and you have to be prepared to have a large pool of properties to analyze when using that strategy.

Mario,Discuss with the agents the specifics on the property (ie age of roofs and systems, claim info, pets, pool, etc.) before making any changes. 

Like so many of you from the dawn of your real estate journey, I'm just trying to be a sponge and get my hands on as much info before dipping my toe in the pool. 

@Hal Thompson Yeh, the HOA's got more aggressive since there's a pool of investors buying them.....looking to make money off rents, while trying to delay the eventual bank Foreclosures.

I've had a furnace need repair, two water heaters replaced, 2 main line sewer backups, a sink plumbing issue, and a shower repair. 

You have owed utilities over $8000 to an utility company, so we had to live without water for 2 weeks.

Tangibly, this could be a detached or attached space converted, or maybe you find a master down floorplan with other bedrooms upstairs (and that master has a door to the outside and is large enough to add a kitchenette tapping into water and drain from bathroom or kitchen).

S8 comes with it's own set of rules but if you have a good property manager, they'll be able to help you navigate those waters and make sure the property is up to S8 standards but the cashflow has been awesome.