On a positive note we did build a new house to the specifications of a specific tenant. 

On the positive side, it seems like you have a good potential BRRRR that you can use to purchase additional properties.

Hi Allen, that’s an exciting position to be in—$500k gives you a lot of options! 

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.

I picked Las Vegas because it’s close to me and California is out of reach. I see lots of properties on the market but almost none of them makes the .5% let alone 1% rules, so why would any investor buy them? In most ...

The Suburban markets with New construction offering decent builder buy-down rates 5s %, and selling completed inventory homes to investors is an opportunity we’re pointing investors to, as well as Duplexes outside the city, that’s where we’re finding some of the best options to get closest to positive cashflow with 20/25% down.

Financially, I’m not in a position where I need to rent it out immediately—I can afford to wait a bit if needed.This is my first time as a landlord, and I was lucky with my first tenant, who was fantastic.

You can very comfortably and at your own pace set yourself up for a very stable start by strategically positioning yourself to be able to buy a property this way if you start preparing now.I hope this was helpful!

If you have a RE attorney and mortgage broker then I am assuming you are using some type of joint venture or participation agreement to outline who gets paid what and who is in what position as you tranche the loan.

Again I am not advocating for this company and each person needs to do their own DD, all I am saying is I appreciated someone seeing something, calling me on it and having a conversation about it. if @Cheryl Abram  lost 100% of her investment then these must not be first position loans.. as even if a rehab fix and flip fails you still have SOME value in the assset its not nothing.