Working on the rest.We rank them by Class A, B, C & D.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.So, we recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

If I owned several LTRs and STRs, I'm under the assumption those two would not mix when it comes to depreciation and tax deductions because one would be active vs passive?

Thanks for confirming, that was exactly the assumption that I did with the other replies, the prices is also big for the investment size.

Recommend you first figure out the property Class/Risk you want to invest in, THEN figure out the corresponding location to invest in.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.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

@Mike Adams, a few comments:a) I think that the home not being occupied is a reasonable assumption.

@Roxane WarbyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.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.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

.- Your out-of-state investor agent should have plenty of recommendations for local contractors, lenders (conventional and hard money), property managers, etc. and be able to identify appropriate assumptions for your analysis (e.g., appreciation, vacancy, rent estimates, etc.).If you have questions, feel free to PM me--happy to help.

I consider these 2 risk profiles equivalent.You should talk with your clients about their assumptions, including how easy it will be to rent the properties.

First I would call the local utilities and contractors who deal with this stuff to see if your assumption is true.For electricity maybe some sort of generator?

We set the price based on our original assumptions but the offers we received were all well below what we needed.