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.

Networking, local meetups, door knocking, mailers, wholesalers, online forums specific to your area of interest.  

We're going to be small potatoes investors really- my goal is 10 doors in 5 years. 

I welcome and encourage anyone on the forum to chime in if I may have misrepresented anything, but this has been my mental model after spending countless hours running through different scenarios.I dont have a heloc personally but just curious are they all fixed rate / or are some of them variable when rates rise the interest rate rises or when rates fall the interest rates fall.   

For example I am near old town alexandria and the businesses are 200 year old row homes and there is no place to put ramps to get in establishments and door openings are not wide enough, but that is because they also could never comply. 

Install cameras and exterior lighting on timers, place no trespassing signs, and place items that indicate occupancy - like a BIG dog bowl near the front door, shoes, etc. 

Something with more doors and more potential.

I would protect myself and cut my losses so I was not looking over my shoulder or getting high blood pressure every time I heard a knock on the door (hoping it is not the FBI showing up to ask you some questions). 

Fast forward to today, I have over 275 doors.

Some costs MAY qualify as startup costs if the rental rises to a qualifying trade or business level under 195 as well.