Real estate has been a passion of mine for years, even while working in the high-tech industry.Together with my partners, we’re constantly on the lookout for our next exciting real estate adventure.

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.

When we present a Subto for investors to buy, it has to have enough meat on the bone, all said and done, that the investor will still have equity and the property will cash flow.For instance, I have one I'm working right now, that has a high entry, because the seller wants some cash out to himself, but even with that, the buyer will wind up with $50,000 in equity.

Hey Andrew, welcome to the Forums.That’s awesome you’ve been learning about real estate since high school—starting early will really pay off.

With your strong credit score, high income, and solid investment portfolio, you are in a great position to secure financing for an investment property in the U.S., and as they've mentioned above DSCR is something you might want to look at.

@Lillian Pintaro - you are correct for high end MFH here. 

Focus on high-impact areas like the kitchen and bathrooms, as these often add the most value to a home.

If the proposed loan is too risky because (1) chance of default is too high and or (2) cost of foreclosing too high or time it takes too long and we would otherwise decline the loan, we might offer to purchase the subject property for a price equal to the loan amount.  

@Chris Shon Hiring a real estate-focused tax accountant can be highly beneficial, especially if you’re new to navigating the complexities of real estate investments and LLC filings.

I'm just getting my hands on real estate investing, I know it's not a good time with high interest rates 🤦🏻‍♀️but I'm looking to get something by this year.