Just remember: most negative reviews are written by problematic tenants.

There are a lot of opportunities to keep it full while negating the full time management/customer service aspect.

Agreed, and in many cases, insurance is destroying cash flow if not pushing it into negative territory. 

Granted it is unlikely to result in a home run, but it also is less likely to fail big and negatively affect prospects for years. 

If I take out $200k, that property  will have a negative cash flow of $500, but the overall portfolio will still cash flow positive and I’ll have capital for another purchase.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

.* compensating for their small manhood (women carry too)* Afraid/scared* a “little man” (again, women carry too)* have a superiority complex* some other negative thingThe same things are said about people who drive big trucks.

The negative equity position is one reason (there are many reasons) why adding an ADU is one of the worse RE investments.  

Doing a LTR would likely be a negative cash flow. 

Hi @Philip Jones,For the refinance aspect, the main factors will be the FICO Score, cash flow of the property, and as-is value.A Higher FICO will let you get a larger loan size and lower interest rate.Good Cash Flow will ensure that your property will be profitable for you and enable you to get the max loan size that your FICO allows for.The As-is Value will play an important role in making sure that you meet the minimum requirement for a DSCR loan of 100k, but also in making sure that the rehab work that has been done provided significant value add.