: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.

I did have two called and we paid them off upon receipt of notice from the mortgage servicer/ credit union in one case.And there are many more gotchas bottom line if you have deep pockets this is fine if an investor thinks this is a no money down I dont need any money this is a disaster waiting to happen.

They just don’t see enough of these deals to feel comfortable with them.That said, I’ve had more luck with smaller regional banks and credit unions.. especially those that cater to higher-net-worth individuals.

You can call local banks typically credit unions in the area to see if they have a construction loan product.

What credit score do you think tenants qualifying for government assistance will have?

We use mysmartmove (by transunion) for credit score and financial and criminal details, then compare that with the information provided on the application form to look for inconsistencies.

The leverage you can access is typically contingent on the credit score, experience, loan amount, ARV, purchase price and property location

As well as Sellers simply are not informed of the risk of devastating impacts to their credit scores and what equity they may have had in the property if the transaction fails.For a well capitalized Investor and or company and a fully informed seller these can be structured as you note with a Wrap that keeps the seller with  some control or ability to get the property back.

What is her credit score?

For example: Looking at pricing right now where @90% with a 720 score, you'd be looking at paying 3 points to get a 2nd home mortgage.