Some risks include:- Declining property values, leaving you with little or no equity.- Rents staying flat while property taxes and insurance increase.- Unexpected expenses that eat into profits.For example, some investors who bought in 2022 at high interest rates expected strong rent growth to cover costs.

@Michael HoustonSo cap rates are for commercial properties so they have no use in 1-4 unit values.

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.

This is especially true of small mom & pop businesses in high end areas.  

Wishing I had bought a duplex or really any piece of property straight out of high school for a jump start but here I stand. 

Keeping our overhead low and estimated revenue high.

The world values your money at 3 or 4% with no risk. 8 or 10% with moderate risk.

high priced markets like west coast pricing might be 75 to 95% of note value..

I highly recommend using Baselane for managing your rental properties.

The programs that claim high success, over and over again, are the ones that appear on these forums a few years later with students making claims about misrepresentation by the programs.