Are you accounting for everything—taxes, property management, maintenance, insurance, reserves—and still hitting your target returns?

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.

However, some of the best cash-flowing markets on paper can also come with the biggest management challenges.

The place where you can add value with no money is a situation like: you find project A, it is a 120k purchase and it should need 80k rehab but you can get rehab done for 65k cause you can do some of the work and you know how to save on materials and you can manage the rehab. 

Doing real estate and managing other peoples money from a fund are two very distinct skillsets.

I currently work with investors who are looking to invest SFH/LTR that are turn-key ready and manage for them on the back end, so I see a lot of benefits in that market across the board. 

@Melissa Sejour a good property manager will give you a lot of information that you care about.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.

Until then, I'll be trying to absorb everything I can to fine tune my approach and prepare for managing REI business post-acquisition.

I actually have two south side chicago properties right in that pocket of Greater Grand Crossing.The key here, more than anywhere else, is proper tenant screening and property management.