And how they were expected to use their talents and multiply them.

Are we expecting a recession? 

Scenario 1 they don’t or refuse to move- eviction costs and/or lost rent Scenario 2 they move out and Cap ex and turnover costs, lost rent, advertising for new tenants in a somewhat of a qualified tenant shortage, headaches can be avoided by simply having a conversation with the tenant to see where their head is at, and that they understand what your expectations are.

@Dave AllenRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Brian Corbett@Dawn Brenengen@Gregory Walter@Chris T.

When you go inside, you're verifying that the condition and estimated rehab costs match your expectations.

At our firm (tax advisory) we are offering a service to help clients with this and we expect many tax/cpa/law firms will as well. 

Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.

In the long term  expect RE to appreciate at a rate equal or greater than CPI.  

So sometimes you have to temper your expectations.