Will the 6% you agree to pay a Realtor be a good return on investment versus the Buyer pool that you get exposed to. 80% of buyers will use a realtor.Lastly, a few years back I had an agent approach me to list my home and he was willing to take a 2% commission.  He was a newer realtor and I had experience reviewing offers because I’m a full-time loan officer.

: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.

Jackson MS 80% of your rental pool is on some sort of subsistence Portland maybe 15%Jackson life long renters ..

And higher interest rates have priced out many would-be first-time homebuyers, forcing them to remain in a growing tenant pool. 

The act of raising the rent can make some tenants move out of principle and if you don’t have a large tenant pool, you’ll just lose money. 

Booked every night for a month, doesn't even cover the mortgage, let alone the cleaning fees and maintenance of the pool, etc. and if you have a property manager, you have to be cashflow negative. 

Out of 2,500+ investors we have as clients, only a small handful invest as an LLC.I could see the point to an entity if a group of family members or friends were pooling their money to invest in a syndication or several syndications, but outside of that scenario I don’t see the point to it.But don’t listen to us, get competent legal and accounting advice from those licensed to give you proper advice after evaluating your legal and financial situation and risk tolerance.

If you recall also those with swimming pools in Los Altos hills that were on a hillside some of them the water came out and flooded into their homes.. it was quite random.. my kids were walking home from grade school alone ( Back in those days it was OK for kids to walk a few blocks by themselves.. )  The poor folks though on Hwy 17 connector through Oakland got pretty much squished when the top deck fell down that was very sad..

It just seems like a 5 unit and a 4 unit are arguably in different asset classes because of the difference in buyer pools. 

: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.