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.

Majority of the time rental properties are not something that will have an immediate return, putting lots of cash in your pocket.

They are major BRRRR projects with the main exit strategy being to hold as medium term rentals.

Sometimes, unseen issues (like major repairs) end up costing more than the discount you negotiated.Final Thoughts•If there are no major rental restrictions, and the numbers work based on rental comps, this could be a great first investment.

Everyone is telling me that the majority of the time they dont take the LTO to term.

Hi Renata,To gain a clearer understanding of the overall condition of the home—including plumbing, electrical systems, HVAC, and the roof—and to identify any major issues such as asbestos, water damage, mold, foundation concerns, or wood-destroying insects, I strongly recommend having the prospective properties thoroughly inspected.

There are lenders who will do 15% down, but the terms will make the loan impractical in the vast majority of cases. 

I had a few questions and would appreciate any advice in general.Strategy / Goal: BRRRR but no major rehab at first to lower the risk.

It’s still flying under the radar for a lot of investors, but the fundamentals are strong.Detroit offers:•Affordable Multifamily Options – You can still pick up 2-4 unit properties at prices well below most major markets, often with strong rent-to-price ratios.

For the majority of the properties we manage for our clients, we pass the yard responsibilities to the tenants.