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.

Our market is stable with strong job growth from major employers moving and developing here like Meta, Intel, Amazon, etc.

When investing OOS, consider targeting markets with major corporate relocations and expansions.

Check the property: Make sure it’s in decent shape – no need to take on a major project right away.

The NAR settlement was ridiculous and has only forced agents to do more paperwork and disclosures, but the vast majority of us are still working the same way.The law requires the agent to sign an agreement with you.

what are some other major red flag questions you might ask?

Even if you got the 130k valuation, between the HM loan and the refinance the lender just took the majority of the equity in form of lender fees, appraisal costs, and interest.

I’d also look at local amenities, school districts (if targeting families), and proximity to major employers or transportation hubs.

Investing out of state as a rookie is a major mistake, like starting a land war in Asia.

Experienced managers can help evaluate potential investments by providing insights on rental demand, market rents, tenant preferences, and location-specific factors that affect leasing success.For example, rental properties need to be close to conveniences like major roads, shopping, and schools.