Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Just got off the phone with the zoning guy and he said since both of my lots pre-date the zoning regulations in the city, they're grandfathered in so-to-speak, which means I am able to build a single family on each one!

(I actually laughed when I first learned this.)10% property management fee (With separate charges for new leases, repair management, and rent collection—what exactly does this cover?)

Will that be only for one property, or cover multiple properties like umbrella policy?

@Samuel Coronado - cash flow on new builds here right now is fairly non-existant without putting more than 20% down. 

However, I disagree with your comments that the investor buyers who buy these homes have a greater appetite for risk and know the risks that exist.

. - WRT income, at a minimum it has to cover all of your costs plus some for unforeseeable expenses.  

Partner Driven provided 100% of the financing, covering the $77,000 purchase price.

If you convert it to a rental and sell later, you may owe capital gains tax + depreciation recapture, unless using a 1031 exchange to defer taxes by reinvesting in multifamily.Leveraging $100K in equity via HELOC or cash-out refinance can help fund the next deal, but ensure rental cash flow covers debt, expenses, and reserves.

Buyers want longer letters that cover more items.