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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.

But on this specific guy, I jumped on a call to explore the program and it was a high pressure sales call, it did not feel organic, not trustworthy and certainly did not feel the right fit.Why would someone spend 10k on a so niched-down space of real estate when they can get someone for the same amount to teach him/her everything?  

Anything bigger or in a nice area, could multiply that amount. 

Its a small investment to try both as one deal pays for them for a good amount of time

Do you have other assets you can leverage (like a home equity loan) for that amount?

First off, pardon me if I misunderstand things given the limited amount of information I have, but there are 2 things right off the bat just from your description that could be contributing to your issue: 1) a 2nd floor unit - I had a similar setup for a duplex I owned in St.

And if so, would you have to disburse all that capital within a certain amount of time? 

Actual cost takes into account depreciation so complete destruction of a property could leave you under water in terms of the amount paid for the loss.

You have a 200k equity buffer, so you should be able to get closer to 130k from a LTV perspective - but will your rent amount cover that new loan?