: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+, 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, 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.

We have the capital to weather the slow seasons and yes the mortgage is our biggest expense about 55%-60% not including taxes/insurance. 

If you don't already own a home yourself, I always suggest house hacking as this gets some skin in the game, but also allows you to learn hands-on and offset your mortgage payments.

An appraisal is subjective when using ABC's "CASH" guidelines rather than those when hired by your bank or mortgage company.

I have a free and clear, rented property I intend to keep for now, but want to get a loan to pay off another property's loan to 1031 it with no mortgage balance. 

The cash flow left over after reserves, my mortgage, and other expenses is the cash flow that I "pay" myself / my business. 

Conventional mortgage - investment What was the outcome?

Take Home Pay:  Approx $105K/YearMoving to Colorado in the next 6-9 months Living with a friend for extreme discounted rate Own two homes, one in Colorado cash flows around $250 , one in Florida (property of topic) [Mortgage$3200 HOA $440]

With rents being inflated in this area I would rather paydown my own mortgage than someone else's.  

This next house will have a large mortgage and will definitely show as a loss on paper.