Each STR property I acquire must meet two financial benchmarks: a gross rent multiplier (GRM) of 5 or less [Property value divided by projected income must equal 5 of less], and compliance with the 1% rule as LTR, which serves as a backup if regulations shift or if there's a decline in STR income.

But I am single so there is no second household income.

When creating your criteria, it is important to focus on the evaluation of the following qualities: • Capacity to pay: Does the prospective tenant have enough income to afford the rent and other expenses involved such as utilities or additional costs such as parking or storage? 

If you are wanting rentals who cares about up or down 10- 15% when you are earning 10- 15% net income. 

We're all here to generate more income, and we should all do what makes us feel the most confident be it turnkey or "traditional" soup-to-nuts.Regarding #2, of course the turnkey company takes a cut, but to me that matters not if they are getting you a better deal than you could find on your own.So my request to you... can you keep us posted over the coming months how everything turns out?

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I was thinking of doing rental properties near college towns as I think the income would be steady and minimal risk.What sort of capital is needed to get multifamily properties in B rated areas?

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Rental properties can indeed provide a steady income stream, and it's fantastic that you're exploring this avenue.Here are a few considerations and steps you might want to take as you move forward:Market research: Keep looking at possible multifamily buildings in the Augusta, Georgia region.

Those POH homes are pulling in an additional $108k over the pad income and if you assume 50% expense on those homes your drawing 54k NOI for you CAP analysis.