Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

The voucher is the most that Sec8 will pay for that person’s rent regardless of where they rent.  2) The second part of the Sec8 equation is the market rates for specific neighborhood’s and property types (SFR vs apartment, # bedrooms, # baths, utilities included vs paid by tenant, etc).

@Jai Windish I don't know the neighborhoods of Peoria, but what about something like this: https://www.realtor.com/realestateandhomes-detail/1025-N-Uni...?

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)

Bryan,This is one of the biggest challenges when investing in C/C+ areas, and it’s even more amplified in D-class neighborhoods.

The property is zoned as a SFR house and likely in a neighborhood of the same.Was the property not appraised by the bank when you got your mortgage?

I would say if you do jump in without physically going to the area...you should definitely buy in a nicer neighborhood (I hear too many stories with new investors getting burned investing in bad neighborhoods). 

Some of the best investments can be found in neighborhoods where you may not want to live, but the numbers support it! 

People don’t want to share their quiet neighborhoods with renters who don’t value peace and quiet and a sense of community.  

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.