Along with the condo fees come the amenities (gym, pickleball, boat docks, tennis, putting green, heated pool, etc.).  

The 1-4 unit buildings will have a larger buyer pool and maybe a larger price per unit as a result.

Some might be grossing 7% while 11% is more frequent at other beaches....One can shoot for $30,000/room for oceanfronts with pools for example. 

I'd be interested to hear how you approach evaluating a borrower’s past performance and how that plays into your final lending decision.I am not a lender, I have my pool of lenders that lend through our investor portal for our deals (so I am the borrower).My suggestion about checking the track record stems from our lenders asking about our past deals.

: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.

This will make it harder to afford, harder to get lending, and ultimately limit the buyer pool which puts negative pressure on prices.  

: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.

@Jonathan Greene Looking forward to some nice sunny weather and meeting like minded individuals in the business.

We added a yard game area/hot tub/pool/etc.

If you notice pooling water or suspect a leak, there could be unseen damage to the interior.