The neighborhoods that do make sense should be relatively few!

Hi Khalid, happy to talk shop and help out with anything KC REI related. congrats on your new construction project.

The process is relatively the same. 

: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.

I have some relatives that will never leave the safety net of a job  or even invest in RE due to the not thinking outside of the box (or cubicle).

For a 1-4 unit in a cheaper cash-flowing market a the costs to refinance are not cheap relative to the equity being pulled out in many/most cases. 

The "fine print" here is fairly sizeable upfront fees and high interest rates, relative to a traditional construction loan from a bank.  

I generally rule out most single family homes as viable rentals, as prices are pretty high relative to rents, so aside from some downtown neighborhoods, typically you do not find large areas of single family rental neighborhoods (a median sale price on a 3 bed, 2 bath home so far this year in Dane County on MLS sales data is at $430k). 

More in the midwest.I was thinking Vegas because it’s relatively closer to manage when necessary.I realize there isn’t any 1% or 2% rule in LV.Thank you

A word of caution related to any kind of mortgage: if you get money from your parents and you plan to repay them, then it's not a gift.