See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

This focus gives you a national reach, and that oh-so-important factor; scalability. 

Awesome job by Neal and his team in managing the properties and consistent communication with their investors.As a Limited Partner investing in a syndication, for me, trust is a big factor.

Our pro forma for the self storage property we built was rock solid until we opened the business and a year later I was facing losing everything because of all sorts of factors beyond my control.

Need to be sure you include the "unknown budget" and never take the optimistic approach as it is better to have money left at the end than writing more and more checks that were unplanned for.Again, if you can walk through an actual property and compare notes with someone that does it in your area (key factor), you will be way ahead of what a generic book can give you.

I'm sure that factored in to the government trying to find a way to gain ownership of the land and the only solution appeared to be a land swap. 

You need to factor in your POTENTIAL upside. 6.

@jay hinrichs - I've noticed on turn key websites that vacancy and repairs are not factored into these 8%-10% estimated returns. 

If you can do short term, mid term, or rent by the room, your hassle factor is going to increase, but you may be able have it both ways - more property and still cash flow.There is no wrong answer.

Maybe they've been burned by landlords in the past and are being very careful.You can legally reject them based on personality, facial tattoos, body odor, or other factors, but you better make sure you can prove that it wasn't based on any protected class like race, religion, familial status, etc.