Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

It’s as if pointing out any negatives about the guru, or his system, is a personal attack on themselves.  

So, even a small negative like a $50 unpaid cell phone bill that goes to collections when you switch carriers tanks their score.

Last year, on my 9 properties I had negative cash flow after accounting for mortgage payments, etc.

With all the negative comments and concerns over the houses not being completed per the contract dates, perhaps all the investors should speak to a local real estate attorney and see if they can get their money back or other concessions. 

I’ve been on a journey for about eight years now, moving from a negative net worth to a modest level of wealth, with goals to keep growing indefinitely.

I only have one tenant who never missed a payment and was never late; coincidently, he is the only one who uses no assistance.

My net rental income was $300 to $500 a month, not enough to cover the mortgage payment (PITI) so I'm negative on what was supposed to cash flow on paper.

A4: If you pay as “friends and family” – then yes, need 1099s.Q5: I only need to send 1099s to people, not to LLCs, right?