I believe up to close to 40% down with a 720 or greater credit score on a conventional loan product could give you the best interest rate. 

For me A or B grade means that you can get a tenant with a 700 plus credit score with an income well above the minimum threshold. 

The tenants so good I even lease a new unit to end same day an old tenant leaves, they have 700 scores so no one does anything wrong. 

The market since COVID has reacted incredibly over reactionary on the way up & down, so I expect a K-type recovery in certain pockets but it be just profound and quicker than the yesteryears(3-4 type fall in GR, 5yrs + in GD).

Banking relationships are incredibly important in this business, especially as you grow your business.  

: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.

Typically they want good credit score, landlord experience, and 20% down.You can get ones that will either use current rents OR market rents.

Eventually the amount you invest will start to grow and the cash flow accelerates quickly and that's why it's a snowball.There is more than diversification that can go into risk mitigation even within prosper you can look at things like credit score, delinquencies, debt to income ratio, and much more.I'm not here to convince anyone, just would like to share my experience and help to answer questions. 

Credit score. references..

Some lenders do have minimum credit scores to access these loan types, but it is the exact same qualifications for income and assets as non renovation loans.