I am currently under contract with a wholesale deal that was to close on Monday. The property is being purchased at 103 with an ARV of 375. The wholesale deal is at 81.5. Everything on my side was set to close, and th...

In a highly competitive tourist market like New Orleans, I update my photos weekly. 

Overbuilt on the high end MFH. 

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.

In your instance, as the owner of the property you can have a direct non-licensed employee to perform property management.

However, with high rates, the next mortgage would be very expensive, and a vacancy would be intensely expensive with two mortgages.

I don't ever recommend selling a property unless (a) you want to move the income to another investment that will perform better, or (b) selling moves you closer to your goals.

Perform a cost seg study on JUST the ADU.

Is this price differential largely a matter of how high-end you make the finishes?

Some of the best performing properties can have an occupancy around 60% for the year and sometimes lower.