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.

If your exchange is not done properly or your funds are not safe you are going to kick yourself for trying to save $500. 

I live in Lebanon, IL and this property is also in Saint Clair County in Belleville.I plan on managing this at first, but want to build a proper amount into my budget.What would you recommend for budgeting for in terms of good property management in this area?

For liability protection, consider umbrella insurance, and ensure your accountant understands rental properties qualify for deductions without LLC ownership.

However, once a portfolio is properly diversified in a rather small number of different investments, the portfolio has reached maximum risk aversion by diversification.  

Hopefully your one side will vacate properly and clean. 

Additionally, have a clear budget, factoring in potential repair costs, and ensure you understand the rules about earnest money deposits and closing deadlines.LLC for Real Estate Investing: Forming an LLC for rental properties can offer liability protection and may provide tax advantages, though the tax benefits are non-existence for rentals.

In my 30 years doing this I’ve found that as long as you address each issue that comes up properly and do the repair needed to bring that part of the building up to current code then you will be fine.

This is the only way (currently) to ensure reviews and listing goodwill are transferred to the new owner, which adds value in a sale.

The good thing about condos is that no permits are required; you only need to ensure that county zoning and HOA allow for it.