However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

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.

We found a property in a neighborhood we really like that had a "For Rent" sign.

Purchase price: $90,000 Cash invested: $55,000 Triplex in SE Cleveland (D+ neighborhood)Purchased for 90 and saw 105 for valuation. 25% down plus closing costs and unit repairs has led to about 50-60k going into the deal.

What areas/neighborhoods of Abilene would you recommend for a started SFH?  

Some great options include:Drip Coffee Makers – These are a classic choice, easy to use, and allow guests to brew multiple cups at once.Single-Serve Coffee Makers (non-Keurig) – If you want to avoid the pod waste associated with Keurig, there are many single-serve options that use reusable pods or grounds.French Press – A great option for guests who enjoy a more hands-on brewing experience.Espresso Machines – Ideal for guests who appreciate a high-quality espresso or latte.It’s important to consider your guest demographic and what fits best with your property’s vibe and available space!

2. how to know where to find a B,C,D areas\neighborhoods in cities\ countries.3. how do I know if a property is worth the checking\ buying?

Figure out which best fits you and your personality and take it from there.  

@Andrew Katz new construction in a Class C neighborhood?

Quote from @Deltrease Hart-Anderson: What are your thoughts on putting new construction in a B+/C- neighborhood?