that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases: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.

Quote from @Reeti Peshawaria: Hi, I'm in the process of learning about short-term rental investments and analyzing potential markets, but I’ve hit a major roadblock: understanding local regulations.

The property has an amazing creek canyon (attached photo) is 5 miles from all the major attractions to Yosemite, and 7 miles from a lake.

My property is located in a C+/B- neighborhood has the following landmarks nearby: -1.5 miles from a major university with a popular D1 NCAA college basketball team-1.5 miles from a children's museum-1.5 miles from an art and nature museum-1.5 miles from a beautiful nature parkIt's the dead of winter, and I'm wondering who I can market and how I can best market my property to on Airbnb. 

I find that cash flow is very important so that I don’t have to come “out of pocket” to pay for major improvements / repairs  

Here’s, the hard truth I’ve found in 45+ years in the industry; the vast majority of real estate investors, practitioners and business owners do not have a scalable activity.  

Once rates change direction and start a new directional trend, it usually takes a major event or change in fundamentals to reverse again.

Glad you dodged a major bullet! 

We used one of our existing local lenders to provide the majority of the purchase, and the rest was provided from our investors.

This could be a huge problem, as the "the rent is too damn high" people will be extremely upset with huge surges in the cost of living, felt acutely in some major metros.3) 2027-2029 should see a return to a more normal inflation adjusted rent growth curve, with the caveat that if supply continues to remain relatively low, we could see national rent growth outpace inflation in these years as well, so long as interest rates remain high.