So, even a small negative like a $50 unpaid cell phone bill that goes to collections when you switch carriers tanks their score.

Now I get to sit back, relax and collect $2300/mo in rent plus about $100k instant equity because of how the market is over there.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I have 2 sets of tenants that I have had considerable problems with collecting the rent over the past year.

For market pricing, I collect LTR data from BP rent calculator and multiply by 1.5x.

@Luke H.If the buyer is living in the property now it’s a consumer loan compared to a loan to an investor and will kick in a lot more regulationsYou can’t do a balloon less than 5 years, need to have it serviced by a licensed servicer, will have to go by interest rate usury laws, collect escrow…..I would not loan on this property to an owner occupant

They charge and collect the late fees you might let slide.

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

Shoe collection and wardrobe that's way beyond what my budget affords. 

However, in any civil judgement, collecting is a different story.