We don’t collect for taxes or insurance premiums at closing, because we don’t allow those to be escrowed on the program, which can ‘lighten’ the up-front expense, compared to conventional mortgages. 

Also, focus on 2 years of job/income stability.Class D Properties:Vacancy 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.

Request and review sample reports to ensure the collected data is useful and well-presented.

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, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Don't forget to factor for this - upon moveout, we reasonably expect to cashflow around $500/mo, which will allow us to maintain and hold for as long as possible to collect appreciation and yes some extra money toward the next investment. 

We currently have 105 units and are using a variety of excel, google docs/sheets/calendars, apartments.com (ads and rent collection), docusign and QuickBooks online (which we would like to keep). 

Sure that's fine but.... the owner said he used multiple bank accounts to collect rents and thus can't provide the 3 years statements since they bought 2022 so not 3 years.

Rent collected way under fees paid lease, extra utility charges to me, management fees, taxes, insurance,  do not even come close. 

This LLC does not own property but it manages the properties collects rents etc. 

But very unlikely with W2 income and a full time job.But this is an awesome concept as you could basically collect rental income for several years and never be taxed on it due to passive loss carryforwards if those build up.