However, if you choose lenders that originate the loan (purchase/rehab/DCSR) to the LLC (entity) and do NOT report to the credit bureaus then as long as you do not default on a loan, the odds are slim that your borrowing activity will appear on personal credit.

Several of my investments have foreclosed or gone into default, and my earnings were negligible, but I have always gotten my money back.

FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% You are looking at S8 because you naively think it will solve all your tenant problems.NOT TRUE!

: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.

: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.

What I did instead (because I assume that people very often by default think they are super smart and you are liar, no matter what your true intentions and actions are) was very simple: in each transaction, before closing a deal, I did my thorough research of the market and figured for myself how much the product I wanted to acquire is worth to ME.

If it's allowed in your area collect a double deposit to offset the possibility they're going to default.

But when they didn't make up the missing 2 months' rent, I sent them a Certified letter letting them know they were in default, and they needed to pay it by 10/15.

In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%.

I sued them in small claims court, and now the judge has issued a default judgement in my favor.