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.

The ways around that are to build a business around supporting their voucher and inspection program and spending no small amount of effort ensuring they are smoothly servicing your rentals. 

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

Purchase price: $169,000 Cash invested: $35,000 Looking to put 70K into the separate garage to make a 730Sqft home.

Yes not just for cash flow but for the health of the deal.

@Vinny MuliIf you have equity built up, can you do a cash out refi?

I currently use Followupboss, prop stream, I alternate between calltools and mojo, I've also tried smarter contactIm looking for a CRM that incorporates all of this but Im not paying a crazy amount.  

Purchase price: $155,000 Cash invested: $60,078 Sale price: $275,000 Fix & Flip property in great neighborhood in Saraland, AL.

Even the funding alone is easier since you now have a cash flowing property that can help you fund your seed money faster. 

A common strategy I see with diversification exchanges, is that the investor will purchase the first property cash and the second with a mortgage.