Their ability to recover their money should you default is much lower in this position.

.- Due to my position on the board for the condo association, I am aware of long-term large projects that the association intends to embark on.

Is it a wrap note, where your seller-carryback note incorporated the first position note and the buyer pays you in full every month, and then you pay the first position lender?

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.

But if you put in the effort, Detroit can be incredibly rewarding.Over the last several years, the city has been on a steady upswing: population growth, major corporate investments, and increasing demand for housing are all positive indicators.

Hey Thomas, you’re in a great position so far.

Here’s how I’d break it down and strategize your entry point.Key considerations include the current and pro forma cash flow.

Therefore, any strategic/investing where you have a solid plan to get most/all of your capital back would be my target for this type of capital.

It's like putting your life into net negative before you are trending enough into financial positive.

Still tons of positive cash flowing deals that meet the 1% rule and amazing appreciation here!