Lost the major city and maybe the state.

I know I am really condensing ALOT of things….but if you guys could help give 3 major pointers in the pre foreclosure and foreclosure part  on this for someone who HAS real estate already (I have a condo in Mexico).

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.

They may just lay off a little when next major assessment/revalue comes. 

What we run into is even if there are no major repairs for the year; you have a 15% management fee; $500+ in setup an inspection fees annually, and $2500 in make readys with basic repairs you are looking at nearly $4k in annual, basic costs for a unit which brings $6k in gross rent annually. 

Check out some of things happening in Detroit in 2024:https://michiganchronicle.com/2024/01/03/major-developments-that-will-define-detroit-in-2024/Your first question shouldn't be WHERE to invest (that is #2 question), but HOW you will invest!

@Diana Teng there are a LOT of potential pitfalls:(So, it's vitaly important to not just find someone that you think you can trust because they tell you what you want to hear, but you find someone that their processes seem a good fit for what you want.EXAMPLE: we do BRRR Turnkeys for clients and take numerous vides we share with them - initial, worst state of any demo, when HVAC, plumbing, electrical update BEFORE walled in, before any major payouts and of course a final walk-thru video.One thing that's accurate from all the HGTV renovation/flip shows is that you should expect and plan for surprises!

Just know that the majority of those in the 'education segment' of real estate are presenting you their information to make the speaker money... and if you happen to benefit too... that 's great!  

The right property manager will take up majority of the workload for managing tenants / maintenance and everything else. 

Quote from @Reeti Peshawaria: Hi, I'm in the process of learning about short-term rental investments and analyzing potential markets, but I’ve hit a major roadblock: understanding local regulations.