Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or 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.

Taxes $1200/yrNet Income: 2022 = $6,274 (before depreciation); Gross $51k; 62% occupancy2023 = $5,236 (before depreciation); Gross $45k; 57% occupancy2024 has seen so far, a decline in bookings.

They both are low income and have a hard time making ends meet (paying me).

Fannie Mae does have a loophole (taken directly from the Fannie Mae Selling Guide:"In order for non-mortgage and mortgage debt to be excluded from the debt-to-income (DTI) ratio, the other party has to pay the complete monthly obligation every month for a minimum of 12 months (and the other party cannot be an interested party for non-mortgage debt).

We did not need help in deciding what our investment niche would be; we needed help in creating and implementing a tax strategy plan for a married couple composed of a high-income earner and a real estate agent and business owner.

Planning, such as selling in a year with lower overall income or using a 1031 exchange, can help minimize this tax.

One applicant has a 530 score but seems to have a stable job with 3X income.

I would first focus on saving money & your income.

This could help generate additional income and attract a broader range of tenants.3.Partner with a nonprofit organization: Some nonprofit organizations specialize in affordable housing development and may be interested in partnering with you on this project.

check with your insurance agent if your insurance covers rental income during repairs.