You do not actually need to go that deep to repair this problem.

Rates are set to go down, although not as fast as hoped. 

I would test one as MTR and maybe one as STR, depending on your market.For those of us who know Sacramento, there's actually quite a lot of information to go on in here.

It’s on the rise but you just have to be selective regarding location and try to go for turnkey or keep it minimal regarding rehab  So you don’t have a nightmare story trying to manage a rehab from Out of Town. 

If it's a deal that is in a very very desirable location and has tons of built in equity and appreciation, I would be totally good with negative cash flow for Y1 and Y2.

@Kyle Carter just because a building has all section 8 tenants doesn’t necessarily mean that the cap rate will be higher on exit but it might attract a buyer(s) that are focused cashflow and not appreciation; therefore a lower price to juice the yield.One of my non negotiables if I were you would be to only buy in an area that is desirable.  

So, I called the appraiser and explained that I would meet him on site to go over the paperwork.  

Hey Sarah, if the seller has an agent, it’s best to go through them first since they’ll likely get involved anyway.For a property that’s been sitting on the market, approach with strategy.

It is important to keep this in mind as it might not be neccesary to go through these gyration to only find out you could take the losses regardless.  

If you want to go further, you can use a service like Safely or AutoHost to run background checks.For payments, I’d recommend using a platform like Stripe or Square—they’re secure and easy to set up.