: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.

If its only a 1 unit property then you'll most likely need to qualify for this purchase with your own personal income.Make sure you review all of your options (credit/income/assets) with a lender so you can determine this before you find deals that way you're not having FOMO looking at deals and not knowing how you can actually acquire them.

Property values are half what they are in either coast so really it just evens out.

They should say, no, I will do it for you in hopes to get business.I think that a good GC with decades of experience should charge, say $200-$300 for 1) a review of the Inspector's report, 2) a jobsite visit, plus 3) a budget with prices that are pretty close.

Values have definitely gone up but the rental market has not quite caught up.But yes, at 5% down, my margin is tiny.

B grade property walks are attended by my children to run around and tell me which bedrooms they would pick if it was their home.43605, 43608, 43609 are the popular zipcodes for bottom-budget value purchases...I manage a ton in these areas and my personal portfolio contained over 40 43608 properties at the peak. 20% of these properties will be crazy money earners, 20% will be astounding money pits, and 60% will fare average.I have evolved into the nicer 43612/43613 for my personal portfolio and find the properties earn consistently and far smoother than my 43608 houses. ($80k renting for $1200 vs $40k renting for $800 multiplied by the ratio above vs boring consistency of the nicer area) Oh and I have zero excitement for apartments.

Despite the loan balance being relatively small at just over $100,000, the property's value has significantly appreciated to over $500,000.

I am renting a home to a friend of the family for far below rental market value.

I ask this, because it seems like there are endless ways you can upgrade property, but not everything directly adds value to investment. 

Private Money West Texas How did you add value to the deal?