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.

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

Does your application ask what their work position is?

The networking and local market insights are invaluable.For retirement planning, focus on building steady cash flow and consider setting aside a healthy maintenance fund (I usually recommend 6 months of expenses) to protect against any surprises.If you're looking to expand your portfolio, Columbus is a great market where we still see positive cash flowing deals with lots of appreciation potential.

If they don't pay your judgement you file it as a lien at the courthouse and they won't be able to get a mortgage to buy their home until that judgement is paid because that lien would apply to any house they buy and be in 1st lien position BEFORE the mortgage.

ONLY the contractual position.

The rooms are unfurnished and the tenants are very low-maintenance (hardly know they are there). 2+Unit Buildings here and nearby currently sell for $1.5M on average.I bought the property 16 years ago, so my mortgage rate is very low (2.2%) Even though the property is cashflow positive, my bigger play is the average 5% yearly appreciation.I'm looking for others who are interested in house-hacking in this neighborhood. 

Even with the reduced rates, my cash flow is poor for my equity position (i would still be cash flow negative at today’s rates).  

How about realizing that when you use the current property taxes of a property you are buying to calculate your per door profit that the following year your taxes will reset to what YOU paid for the property and will likely significantly increase your tax expense - which can take you from a positive cash flow to a negative cash flow on a low cash flow property… now you are paying your tenants to live in the property every month out of your W2 income  hoping for an appreciation play until rents hopefully increase.I could go on and on.  

Hi Cathy,San Diego is a great market to invest in and there are tons of people doing it but yes you may have trouble seeing positive cashflow in the beginning.