That all is changing now, ever since Hilco Redevelopment Partners purchased the property in 2020, and received concept and development site plan approvals in 2022 and 2023.

It can't be too strong cash flow if replacing some appliances put you into negative cash flow (I assume you meant deficit, and truly didn't mean defecate).

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

That simply confirmed “proof of concept”.

You have a concept (investing in real estate), but you don’t have a specific plan. 

If you pick a solid property in a good area with good schools, it'll appreciate - it'll be negative cash flow as a long term rental (unless you have some creative strategy or do STR/MTR) and you're less likely to have repair, tenant issues, crime etc.

If the net cashflow is negative, it's treated like a debt/liability for DTI.

So, even as the Fed lowers the Federal Funds rate, and as we see the spread between the 10-year treasury yield and the 30 year mortgage rate shrink, upward pressure on the 10-year from longer-term foundational pressures will see mortgage rates tick up or or at least hold steady.While this is neutral/slightly negative news for home buyers, it is very bad news indeed for our friends in the commercial real estate world, who are really seeing the best case scenario for the 10-year right now.

You might go cashflow neutral or even negative on the properties, but could probably walk away with $50k to $100k in cash.

Meaning once they get properly underwritten they'll be pressing DTI limits.Those two are not going to be reason the pent up demand gets exercised; if rates drop significantly and quickly it's for a net negative reason and likely job loss so those "pre" qualified and approved are likely on shaky grounds and buyer expectation shifts happen to the one's that are extremely well qualified.