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.

A revocable living trust is another option for privacy and asset protection.Avoid gifting the property before death, as this would pass the original purchase price as the cost basis, creating a large capital gains tax liability upon sale.If the property is Subject A’s homestead, ensure the correct titling to maintain Florida’s homestead protection for Subject B.This post does not create a CPA-Client relationship.

I am on the lending side of things so feel free to reach out if you ever want to talk shop and finance options that are out there. 

A company adding more options to a plan instead of trying to Nickle and Dime me with upsells.

To maximize your investment, use financing options like FHA or conventional loans, analyze deals based on cash flow and cap rates, and network with local investors through REI meetups and BiggerPockets.Good luck!

If you’re looking for DIY options, PropStream and DealMachine can give you some lien info, but they may not always be 100% accurate or up-to-date.For Central Ohio, check with the county recorder’s office or clerk of courts for lien and judgment records.

It could be a great option for your client's needs, or at the very least, a starting point for comparison with other lenders.

RI or NH seem like solid options these days as a Boston alternative.

Feel free to reach out with any questions about loan options or how I can support your real estate journey!

If you ever need insights on financing options for rental properties, including DSCR loans to scale your portfolio, I’d be happy to help.