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.

Quote from @Chris Seveney: @Jay HinrichsI wonder as a broker if they needed to have a surety bond and could collect against the bond. most likely but its a small amount.. 

2) Would you guys know how much will the amount be approximately?

Ultimately, you want a good amount of properties to convert to leads by nurturing and creating relationships with the owners, being the ones to solve their problems, or offering them the best price possible.

If he owes a decent amount on the property, wouldnt the conventional route make him lose whatever interest rate he has?

When using the 1031 it will restrict the amount you have to spend on a new property.

You just pitch the massive amount of income that you have and how they can have it too if they listen to you. 

If you base your tenant charges on the historical average, you should come very close to collecting the entire amount over a one-year period.Charge a higher rate.

Hudson is a pretty "touristy" town, so BnB's became a big thing and the local gov't was concerned about the amount of long term housing available.

Then at the very least, someone is putting a significant amount into the equity on your home, and is also paying down your mortgage.