It doesn't take long to learn how to spot a good deal.6.

I've watched a similar development fill up within the last year.  

My current project is one that I inherited but will definitely pay off in the long run.One of my biggest questions I hope to get answered is how private lending works and if it is worth it. 

: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.

Long distance property management can be a challenge, where even a small problem can become a big problem.

HOWEVER it was a very long saga that took about 7 years to resolve.

How long ago did the comps your agent provided you close? 

Part of my pre-approval process is to scrub the borrower's bank statements for these and find out up front what they are for proper DTI calculation - I almost had a file fall apart last year because of Affirm. 

I figure a one time expense to prevent major water bills in the future might be in my best interest as long as it doesn't cost too much. 

My yearly cost to run my STR is $30k and I've been bringing in $100k for the last 2 years.