It depends heavily on past returns, which as we all know from our prospectii, "past performance is no guarantee of future returns".

There is certainly a strong correlation to credit score and tenant performance.

He had performed virtually no underwriting.  

This increased demand is in areas that all ready have limited supply.Since the rates started to rise, my appreciation forecast has been conservative (as I have indicated in numerous posts) for my San Diego market (I have been underwriting at zero appreciation near term) and fortunately for me the market out performed my forecast.  

The short answer to your question is: 1) You will engage with a new Administrator/Recordkeeper who can perform what is called a "Plan Takeover."

Create a bonus structure that gets those managers pumped to perform.

Look at median household incomes, look at market economy base and diversification, look at what's being done to protect and grow economic performance, just run the #'s and the message should be crystal clear. 

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

Tapping into that equity through a HELOC or cash-out refinance and reinvesting in higher-performing assets could improve their ROI significantly.

Here's a quick breakdown:Unforeseen Property Issues: Hidden damage, bad tenants, major repairs – these can eat into profits.Vacancy Woes: Empty units mean lost income, impacting cash flow.Market Downturns: Property values can drop, affecting your investment's performance.