: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.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Basement slab lowering to bottom of footing + new slab     $30,000 - $50,000b.

This is why it gets the "High Opportunity zone" grouping, but on a more granular level the Grays Ferry neighborhood has lower rents then all these areas, hence Section 8 rent being more then market rent.

He needs to share 50% of all expenses.

Use an earnest money note for a reasonable amount and that keeps you from out of pocket expenses and you'll have a better contract as the value of the note is the same as cash with respect to consideration.

I think to better answer this question for your specific situation, I would like to know where you'd plan to live and the cost you'd acquire monthly for your new living expenses.

Paying extra on the mortgage will not lower your payment. 

There are many locations which are good for cash flow, or property values are lower and rents are higher.

They said he was too expensive since there was little work to do aside from turning the unit over and collecting the rent.