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.

That is lower than market and puts you in a cashflow-neutral situation, but it is unlikely your residents can afford that.

You are generally going to either buy it at 95% of value or what is owed, which ever is lower. 

All else being equal, lower mortgage rates reduce the cost of ownership and, thereby, allow more people to afford to buy.

Will you get a lower rate waiting? 

Baselane also lowered their APY, which I get, but in the end, it was worth it to me to pay for Stessa Pro for the added beneifts.

Lower than that?

This can then be used as a negotiation chip in order to lower the price of the property.

Again, different strategies but in my opinion the larger you get the lower the risk you want and as others have pointed out I think your deals in the build to rent sector or with larger tract builders is where we focus and probably others as well. maybe this was a special deal. in a few weeks once we get the appraisal back on an infill lot we have I'll show you how we made almost a million dollars on a site that's 0.1 acres and urban with very little risk backed by appraisals. we didn't have to wait 18 months or invest 500k either. we barely needed a capital partner too and every deal we entitle we would develop.

Tenants in lower Classes will have lower credit scores, which means higher chance of defaulting on their lease payments.