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.

It may be easier to include utilities in the rent.

If your client is planning to use a loan to purchase the portfolio, they should be aware that many lenders include prepayment penalties or restrictions when properties in a portfolio are sold off individually.

I would include servicing costs of the loan and licensing costs.

We don't allow any "deal-making" in the forums, which includes advertising your services or properties, looking for partners, etc.

We try hard to follow the regulations, including the Dodd Frank Act.

Unlike long-term rentals, STRs can be treated as non-passive, allowing depreciation deductions, including bonus depreciation (40% in 2025) on eligible assets.For tiny homes, tax classification matters:If mobile, it is considered personal property, allowing 100% depreciation under §179, subject to income limits.

Send a document once and ensure it includes a deadline for their response and a consequence for failing to respond.

True, but (a) they were typically experienced investors, and (b) today's market includes record prices and high mortgage rates, which is a double whammy. 

Several questions that will allow financial professionals/planners to help you make an informed decision include: what are you paying in rent?