![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1244003/small_1725400611-avatar-josuer20.jpg?twic=v1/output=image&v=2)
4 January 2025 | 35 replies
: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, 1-3 years for positive cashflow, 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, immediate cashflow and at the lower end of relative rent & value appreciation.
1 January 2025 | 24 replies
@Venecia BaezRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2386126/small_1694562757-avatar-nolanm34.jpg?twic=v1/output=image&v=2)
30 December 2024 | 8 replies
(The typical commercial loans I use are at 9.5% right now so be prepared for that.)4.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2985585/small_1711950075-avatar-anam181.jpg?twic=v1/output=image&v=2)
27 January 2025 | 35 replies
As a side note typically I do not use my deferred tax dollars to invest in traditional real estate as the benefits (depreciation etc) are all lost when using a self directed IRA - My guess is build to rent will provide little to no cash flow to build the account - it will all be locked in the property.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/3162791/small_1735957585-avatar-ilianah1.jpg?twic=v1/output=image&v=2)
3 January 2025 | 5 replies
These are what we call "A-class" markets—areas with strong fundamentals, high demand, and typically excellent long-term appreciation.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/951519/small_1694574641-avatar-jiy1.jpg?twic=v1/output=image&v=2)
19 January 2025 | 56 replies
Typically, the mobile home funds can achieve very attractive COC, a somewhat recession resistant business model, decent upside as well.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/9011/small_1621348727-avatar-jgonzalez.jpg?twic=v1/output=image&v=2)
31 December 2024 | 3 replies
The cost of a cost segregation study varies but typically ranges between $1,000-$15,000.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2799114/small_1734903169-avatar-denisel78.jpg?twic=v1/output=image&v=2)
2 January 2025 | 36 replies
The down payment requirements are also steeper, typically 20-25% for investment properties.
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1145788/small_1621509571-avatar-jorgec58.jpg?twic=v1/output=image&v=2)
7 January 2025 | 28 replies
If you're certain the type of renter you're going to get are traveling medical professionals, you know they're on short term contracts (typically 13 weeks).
![](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/81275/small_1621415663-avatar-flatfeemlslist.jpg?twic=v1/output=image&v=2)
3 January 2025 | 26 replies
Many aren't used to explaining why their services are worth $12,000 (the typical pay for selling an average-priced U.S. home).