In our experience/opinion (factoring in security deposit to defer some of the losses):Class A - 0%Class B - 5%Class C - 10%Class D - good luckHope this all helps!

I rarely see ledger boards secured and flashed properly as one example.

This also creates quite a level of security for our clients, especially seeing Several builders in the BTR space go sideways over the last few months and we are currently trying to help several investors stuck in building projects that are only half built.  

Based on my experience as a real estate agent and investor, some of the best deals I’ve seen clients secure have been during the winter and holiday season, so it’s never a bad time to keep looking for opportunities.

As Sean Wagner mentioned, the city of Chicago has adopted their own regulations on charging what's commonly referred to as a "security deposit" you need to do it another way. 

I’d also prioritize getting pre-approved, securing financing, and starting small to build experience and momentum.Good luck!

I am currently waiting on a rather large legal settlement to hopefully hurry up and get him his $16,000 or if we can find someone to go ahead and pay him off early (no prepayment penalty), which would be hopefully paid off sooner than later as well in exchange for a secured lien on the property plus repayment of the $16,000 plus interest short term.

Screening tenants well and then a security deposit or credit card hold process in place will limit liability.

Finally, be open to slightly remote locations with better cash flow potential over high-appreciation markets.If you’d like help analyzing properties or securing financing, let me know I’d be happy to assist.Best,Drago

Can You Secure a Second FHA Loan?