This is common practice for them....so unless you are willing to go to the reserve (which you don't know what it is) then for the most part your bid will not allow you to purchase the property.What I have done is call their bidding department and you can give them what is your best offer on that property and they will let you know if it's a "A", "B" or "C" type of offer at least giving you an idea if you're close to the reserve.

Hi all, Starting with a little background on myself, 24 year old male recently graduated from Minnesota state university, Mankato with a BS in mechanical engineering graduated in May of 2017, currently living with my parents rent free in the twin cities area employed at a large corporation with a base salary of $28 an hour (which will be increasing to about 30 in 6 months) + overtime which ends up being about 50k per year after taxes which I am calming 0.

Returns I'm seeking: - ≥8% Cash-on-Cash in year 1- ≥18% 10-year IRR - ≥$150/mo in monthly cash flow after all expenses in year 1Properties I'm focused on (I am flexible on the area as long as the numbers work): - Class A/B neighborhoods (middle class incomes, low crime, safe for families, decent schools, higher rents (>$900/mo)) - want to stay clear of C/D properties to avoid tenant problems and depressed neighborhoods, even if it means sacrificing some cash flo- decent potential to be exited to an owner-occupied buyer in 10-15 year timeframe rather than a "lifetime rental" - 3-4 BR / 1.5-2.5 BA, ideally built within last 40 years- Major CapEx (roof/HVAC) either recently rehabbed or with 10+ years of lifeAssumptions:- 6-8% combined vacancy / maintenance / CapEx reserves (may be higher depending on the property)- 75-80% LTV financing- 2-4% annual appreciation, depending on the market (though this is just bonus for the IRR in the 10-year pro forma) I feel like these are pretty modest objectives but I haven't really been seeing many properties that come close to meeting my expected returns, so I'm second-guessing if this strategy is going to make sense.

Many investors (especially here on BP gravitate towards the C neighborhoods due to the perception that they will receive more cash flow.My opinion on a B neighborhood vs a C neighborhood is that in a C neighborhood you will have periods of time where you do make much more cash flow on your C neighborhood properties then you do with your B neighborhood properties but there will also be more times where you need to put money back into your C neighborhood properties than your B neighborhood properties. 

The age old one is how to have a washboard stomach or how to lose weight.

I'm running numbers for a master lease of a mixed use building:  two commercial spaces and one apartment upstairs (Units A, B & C is the apartment).Units A & C are leased.  

Buying a 25 year old condo in a B neighborhood and including rehab costs $60k (arv is $75k+).Landlord Expenses:Condo Fees = $190 per month Property Taxes = $2200 annually Water/sewer = $1200 annually Insurance = $500 annually Income:Gross rent = $15600 annually Property is professionally and well managed.

For example one property in an A neighborhood and one in a B neighborhood.

This has been my experience with a B level SFR in Collin Co (suburb far north of Dallas). 

Imagine the rebuilding process and out of area workers coming in to support and housing them will create a pent up demand for apartments especially if you have a B/C property.