It assumes the property is Class A - which not a lot of investors are acquiring these days.Here's some copy & paste info about property classes:_____________________________________________________________________________Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.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.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

A couple of key points:  Painting low quality cabinets they are still crumby cabinets.

If you have a quality deal under contract, souring an end buyer is not as difficult as you may think.

The fees and overall costs of these loans needs to be a key factor including what if the project goes over time . . . . you can be underwater in no time.Underestimating repair costs and overestimating ARVs based on Zestimates are the next stumbling block.There's money to be made but make sure numbers all work WITH contingencies defined and overages expected . . . remember, a project will always cost more and take longer than initially thought!

That's only achieved with QUALITY. 

With more than $2 billion in transaction experience, my passion lies in partnering with investors to discover and maximize value in high-quality real estate assets.I'm eager to exchange ideas, discuss market trends, and explore collaboration opportunities.

Is the house in an area where you would expect new tenants to be of similar quality to your current ones?

My next goal is to implement the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method, specifically in Birmingham, AL, and focus on Section 8 properties.With relatively good rehabs, I’m not looking to be a "slumlord"—I want to provide quality housing for tenants while also ensuring my investment is successful.I’ve heard mixed reviews about Section 8 tenants, but I’m eager to learn more.

Many view section 8 as a security blanket because of the government subsidized rent and turn to the program because the neighborhood tenant base is deemed even riskier.

🏡 Finding quality off market deals?