In what world does reducing labor in a high area of need, it’s only the biggest industry in America, reduce the cost of the service.

However I did some research myself on crime rates, and from 3 different sites, they all suggest that crime is rather high in that area:https://www.neighborhoodscout.com/tn/memphis/crimehttps://crimegrade.org/safest-places-in-memphis-tn/https://www.memphisdailynews.com/CrimeReport.aspxChecking city-data.com, the average salary for that median household income is around 39k.Also, the property value is listed at 145k, which seems like it is on the lower end.

@Amy Hu I am in the same boat as you, no passive losses because my income is too high. 

: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+, 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, 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.

Quote from @Daniel Rabinov: Hello,So I am ready to get going on flipping or BRRRR.The thing is, my local market (Los Angeles) is not a great place to start as entry points are really high for beginners and it's very hard to get good deals here.

The basement itself is an unfinished basement, as well as unlivable (5ft high floor to ceiling).

Meeting seasoned investors, brokers, lenders, and property managers face-to-face at these events is highly recommended.

Also, if you have any other recommendations of a servicing company for a beginner note investor I would highly appreciate them.

We Honestly see this all the time, all over the City, and the fact that you're looking to do it in a Safer way speaks highly.

You also need a high FICO score of 720.