You will get killed on the C and D properties which are usually the majority of most properties handled by a metro PM company. 

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.

They have been incredibly transparent but they are currently deciding on a capital call or selling the property at a major loss (70-80%).

I also have a degree in mathematics from an Ivy League college and I'm smarter than I sound or look, so I apologize if I threw you off with the word cute.

use STR reports it's more representative of major hotel markets and hotel inventory. find hte right brand. we just did a 150 page report on one development site.

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

Mix of 10 tenants but 2 of them being major franchises with 10+ year (with renewable) leases in place..

@Sharma Parth the company is out of Arizona and in 12 markets.Just a few years ago, Flint had a major crisis due to lead water line poisonings.

i have much higher expenses and more headaches of course, but cash flow is higher.most major tier 1 or tier 2 cities should have significant enough rental demand to be able to implement this strategy pretty successfully. 

Even though they don't need major projects or much maintenance, now that we're parents and don't live there, it's still annoying when things come up.