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.

They are asking $375K but not getting it - so not quite $20k underwater from asking but they're offers so far are around $350k and lower.

If the loan amount you are looking for is small relative to the value of the first and the second property combined, they are very well secured on a LTV%; ask for a 1% point lower rate.If you don't want to Cross Collateralize, do you have any CD's or MM you can transfer to this bank as collateral. 

Quote from @Zalman Schurder: Hey guys,I am closing on my first fix and flip in Tamarac Florida.I am renovating the entire home, adding a full bath, new floors, a new kitchen etc.Where can I find ideas for current designs, colors, flooring, paint, and kitchen layout.Any general advice of what to do or steer clear of?

There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

I agree that efficiency is a huge part of that equation, and the more efficient the PMC, the more they can stay profitable with lower fee structures.  

Some that may be higher returns but require more focus/effort from you and then some more hands strategies that can offset what you are doing but are lower risk, more steady returns. 

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.