If you purchase a newer property that has been recently and properly renovated, you may consider using a lower percentage.The biggest impact on your cash flow will come from the property’s location.

They don't build a proper reserve, failing to account for turnover costs, vacancies, capex, etc.

It's super competitive here and we have a large flow of off-mkt homes coming our way, so we had to develop tools to speed up acquisitions/underwriting.I built something that allows VA's or very green staff members the ability to properly distinguish opportunity as if they had years of expert experience & local market knowledge.It will run sales comps & estimate ARV for you:And has drilled-down market stats that are actually useful!

The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.7.

That way you are training him to go through the proper channels.  

With proper planning, this can be a great investment!

@Anish KoshyThere is a lot of information out there on how to do your proper due diligence on a syndication, including the sponsor.

Connect with local investors and experts for a house-hacking strategy and ensure proper permits for rental properties.Good luck!

: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.

Make sure you are properly screening your leads the same as you would for long term renters.