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.

Rent growth has a much larger impact on the cash flow than the initial cash flow.  

The contract was a simple 3 page one and I wrote this in.Also, it is a single family being rented as a rooming house (which is technically not legal here).

I exited the market due to the short term rental regulations - properties that are rented under 90 days are considered short term.

Check with your QI about both scenarios.I did have a client do a 1031, rent it out for two years and then moved in at the advisement of their CPA.  

I don't see them showing up or paying any of the back rent that's due to become current if they wanted to stay.

So, perhaps hiring a couple day laborers to help them move or even paying the 1st months rent on a storage unit would be better.

Rent growth:  This has been flat to negative lately. 

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

And how much monthly rent to you get?