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.

I would try not to tie up any of the principal in down payments.Personally, I had a family member do this same thing, but they used an investment portfolio as the collateral instead of real estate.If you play your cards right, this might be the only short-term money you ever need.Please let us know what you end up doing.

I do direct booking through the Houfy website, taking credit card payment by Square. 

if you have proper team you can self manage. are you local to the area?

As well as 3 credit cards which so far have not cooperated and synced with Quickbooks which takes some extra time each month.

Of course credit card is going to be like 3.5% but it does kind of such because it's already hard to get tenants to pay it lol. 

One thing I’d stress is the significant difference between Detroit proper and the surrounding metro areas.

If there are lease violations, mention them-you not having a key to access the unit WITH proper notice or in case of emergency is one of them.I'd also tell the tenant that they are clearly not happy there, so finding a new place is in their best interest as well and as they have several months, they should have lots of options.

In just the past week, I've had to deny six applications from agent-led showings because the agents didn’t conduct proper due diligence upfront.

Hi Helena, id recommend reaching out to@Wale LawalHe specialized in working with out of state investors and will be able to properly guide you.