See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

Originally posted by @Kathy Fettke:Account Closed and like I mentioned earlier, we found out about their shenanigans very quickly, so only a handful of people contacted them, and we immediately removed them from our referral list.this has happened to all of us in the industry myself included..

I pay 8% in Vegas where my average rent is $2,000-2,2000. 

Industry professionals are biased towards what makes them the most money, understandably, because why else are they in this business but to make money? 

If you’re looking to invest in your backyard, it helps to network with as many locals in the industry as you can.

Our average on these investments have been near 37% annual ROI.  

And while crime isn't out of control in either suburb, it is higher than the national average and the schools are medicore at best.

Also where there are changes in regulations that may require lenders to change servicing agreements which affect who services your loan.I know that's a pain but as things change -- unfortunately, investors will be impacted by changes in the lending industry - and that includes LOAN SERVICING CHANGES.It’s a total cluster between the banks, their loan servicers and their loan servicer’s sub-servicers.

I am not sure what tools you are using for your cash flow projections but it's possible to have a property that does not cash flow year 1 but will in year 2 or 3 and so on based on average historical appreciation in Austin TX. 

A different industry thought leader will present and allow a time for Q&A.The goal is to raise awareness of and encourage this strategy as well as network with likeminded investors and entrepreneurs.