See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

The PM should notify the tenant of the violation and give them 3 days to cure or whatever the lease says.b.

Section 8 is a tool, not a cure-all.It can be a great program if you screen the tenants well. 

You don't have to pay it all off right now and you also don't have to invest now because investing isn't the cure for your debt, it's a sidecar to your wealth generation.When someone says they want to invest using the BRRRR method, it usually means they have read that those returns are good, but you probably have zero experience renovating so your BRRRR will be crooked and uneven and out of balance with your goals.

Hello BP community,I have given termination of lease to end this month to a Sec 8 tenant who violated the lease with subleasing, damage, and failure to cure and repair damages est. $35,000.

For hardwood, that will take much longer and I'd bet they'd walk on it or move heavy furniture before the top coat is cured and damage it.

Posted the Notice of Right to Cure and Termination Notice on Sept 4.

@Bryan Melendez you're just one of thousands of investors that:1) Were chasing Class A rentals from 2012-2020, before their values exceeded their pre Great Recession highs and they wouldbnt casflow at purchase anymore.2) That started chasing Class B rentals in 2020-2022 because of #1 above.3) Started chasing Class C rentals in 2022 when Class B rental prices AND higher mortgage rates also got too high to cashflow at purchase.4) Are now chasing Section 8 tenants as the cure-all for Class C tenant performance issues, so their Class C properties ACTUALLY cashflow.

If the loan cured or got bought at the steps we made a very nice return QUICKLY and if not we owned it..

Instead of working on a vaccine he sat in the Oval Office watching his fellow crackpots on Fox News and told everyone he believed the cure was to inject bleach into their veins.