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.

It’s true that many property management companies are now incorporating tenant benefit packages as part of their offerings.

Building a strong team (agent, contractor, lender, property manager) is key—seek referrals from experienced investors.

We talked about an aggressive paydown at a rate of $5k for the next 6 months to make the deal sweeter for the next person, but renting it would be preferable to that I believe since I can get a higher return on smaller development projects at a burn rate like that. 

This is a question for your attorney and accountant on how you will manage the company etc.

Hello everyone!  I’m excited to get started on my real estate journey. I’ve done a couple of fix and flips but I’m looking to build a rental portfolio. I’m looking in the DFW market initially and I’m definitely open t...

@Adam Poffenbarger are you self managing? 

However, I’m actively managing my investment, taking on risk, and improving the property, which has significantly increased its value.

Will you hire a property manager?

That brings us to 2- the ability to negotiate to CREATE a good/great deal3- financial staying power (being able to survive when things go south)4 - property management 5- creativity