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.

And just the other day, I was grabbing coffee with a friend who reps a group of invsetors out in San Antonio.. they got burned early on by not clarifying their rental criteria, picking up a triplex that sounded good on paper but turned out to have a revolving door of problematic tenants.A baseline business plan isn’t just a mind-numbing exercise.. it’s the guardrail that keeps your momentum from swerving off into the ditch.

This is where smoke/CO detectors, grounding, electric garage door reversers, and other goodies came from.If the municipality performing the U&O calls out an item, Seller is stuck with resolving it either by fixing it or negotiating it with the buyer.

The ability to split lots opens doors for creative investment strategies, such as selling one parcel while developing the other.3.

Typically they have a side entrance that leads to the basement which can be easily split up with a door/wall.

Ten acres in Texas with a mobile home to start is a smart way to get your foot in the door while planning for your dream home. 

No one is going to come to your door stalking you, but feel free to pay a few grand a year to "hide" your identity that will be able to be found in 15 minutes or in a request from the tenant if they request ownership of the LLC or the operating agreement to understand who they are signing a lease with.

This is a great strategy to use for beginners who want to get a foot in the door of investing while also learning crucial skills just as tenant management. 

One of the properties is a three bedroom with no garage that the tenants pay on time but require more of my time than the others .

Think about it like this - the customer pays for all the doors and windows, for let's say $30,000.