: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.

Conventional loan How did you add value to the deal?

That's how a business is valued.

Have bought hundreds of property at auctions, including the first property I bought (detailed in Bigger Pockets Podcast #82) and the very first thing is you have to know value. 

I'm finding some value in doing that. 

@Juan De La Garza, there are two factors here: a) what are you expecting out of the sellers financials that will effect value?  

Call 100 people you think they are good, set appointments with them and see how you can help them while you get to shadow with them and hopefully soon, you start to bring value to them and then they can start paying you.

In my opinion, the NAR settlement forces Brokers to be more of a 'value add' vs a commodity.

The renovations will increase the value of my primary from $800k to about $1.6M.

I was initially looking to buy a turnkey property but I have since found a partner who is interested in value adds and has experience.