I don't know if this can be proven or not, but if the appraisal business is slow, an appraiser might choose to be more strict when checking out houses during FHA appraisals because for the deal to close all the issues cited need to be fixed and they pay the appraiser to go back and reinspect.

Wait... you never checked their credit score????

You might want to check out listings in your neighborhood to get an idea of the going rates and what amenities other hosts are offering.

What checks and balances would you need to put in place to avoid this.I am a firm believer that you should tie any bonus to a metric that the company is trying to achieve.

looking longterm who knows what's going to happen in the market.The largest thing to be cautious about is that with commercial tenants you as the owner often have to put up money in the form of a check or abated or free rent to help the tenant get open for business and build out the space. 

.✅ HOA Fees (if applicable) – Check with the HOA for exact numbers.✅ Property Management – Typically 8-12% of monthly rent if you’re not self-managing.✅ Vacancy Rate – Assume 5-10% of annual rent for vacancies.✅ Maintenance & Repairs – Budget at least 5-10% of monthly rent (higher for older properties).✅ Capital Expenditures (CapEx) – Roofs, HVAC, major repairs—set aside another 5-10% for these.✅ Utilities – If tenants aren’t covering all utilities, estimate based on past bills.✅ Landlord Reserves – Always have extra funds for unexpected expenses.To make sure you don’t end up losing money each month, use a rental property calculator or build a simple spreadsheet to break everything down.

Quote from @Jay Hurst: Quote from @Jeremy Torres: Quote from @Patrick Drury: @Jeremy TorresIn terms of what's a good offer you would need to check with an agent or do some research on your own of looking at comps in the market.

If you have any questions or need a sanity check - feel free to reach out to me in the DMs or contact info in bio.

Your always right even if you're wrong.Let's check next year if we made more profit or if our Occupancy% declined. 

Check out this chart: 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 CompanyMake sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed and ranked on a map on our website.DM us if you’d like to discuss this logical approach in greater detail!