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.

All else being equal, lower mortgage rates reduce the cost of ownership and, thereby, allow more people to afford to buy.

A reason in all markets to potential keep at this time is that you may have significantly lower interest rates if the purchase was done no later than q1 of 2022.  

You are generally going to either buy it at 95% of value or what is owed, which ever is lower. 

Looking for any creative input on how something like this could be structured.Taking part of the purchase price of real estate as a charitable donation and using said deduction to lower your taxes is tantamount to sending a cover letter to the IRS with your return requesting an audit.  

I feel like in today’s day in age there are so many tools for STR operations and I cannot believe there is no integration for a merchant of sale transaction or some kind of financial app/ software that can take the remitted taxes and pay them to the government automatically.

Bottom line, make it so that you never need the seller again after the transaction is closed.

Tenants in lower Classes will have lower credit scores, which means higher chance of defaulting on their lease payments.

Lower than that?

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.