: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.

It will appreciate because that is what prices are saying and if or when they lower the interest rates the prices of the houses will go up.

The rent from the rooms came out to $1,600 so my client is coming out of pocket only $600 monthly to cover his living while owning an appreciating asset in a gentrifying area!

Any help is greatly appreciated. 

So I would need a good interest rate and provide upgrades that would yield positive ARV along with pay down and appreciation to provide 20% equity for a refinance?

Assuming I do not want over-leveraging my DTI.But I would example the rate of appreciation.

If anyone has any other suggestions I’d heavily appreciate it! 

If you feel strongly in the appreciation and you have a clear path to positive free cash flow, I would be very tempted to hold in my portfolio.

Any recommendations, thoughts or advise would be greatly appreciated !!!

I just like things between Denver and Boulder.The middle suburbs are primed to be a good appreciation market over the next few years as highe prices continue to push people out of the city.Have you talked to a lender?