Single-family homes in this area of Albuquerque typically provide steady returns and appreciation potential, making it a great buy-and-hold play.

Single-family homes in this area of Albuquerque typically provide steady returns and appreciation potential, making it a great buy-and-hold play.

They’re typically very local, so they may not go out to Orlando, but that’s who I used and it was a great experience.

StephenNot sure I understand your question but I’ll outline the typical procedure.I assume you’re referring to syndications?  

I am currently saving up for a down payment for my first property which I plan to turn into an investment property (either a Duplex or Single Family Home/Condo and get room mates)I currently work in the Commercial construction field as a Mechanical Project Manager so I have a eye for observing how the typical MEP related things are built and designed and why.Since I have approx. 10+ years in construction experience it makes sense for me to leverage my work experience/wisdom and try to invest in distressed properties and renovate them myself or hire out contractors to do so.I am also trying to study and get my real estate license and possibly look into learning how to become a home inspector as well. 

Short-term rentals would be a solution, but due to strict short-term rental laws in rent-controlled areas of Los Angeles, options like Airbnb are typically not feasible.At present, I have a $5 million property in Encino with two units that we cannot rent out short-term due to rent control regulations, and the numbers don’t work for a long-term rental either.

Typically Hard Money to start, but as you complete 1-2 deals you can explore other options such as private loans from friends/family.

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Turn on AC, some clean up, run ozone generator for a day, problem solved.Tools: buy a household digital hygrometer and measure humidity.https://www.amazon.com/ThermoPro-TP49-Hygrometer-Thermometer...or more advancedhttps://www.amazon.com/YT606-Temperature-Precision-Hygromete...You can typically find the source of humidity with a thermal camera.

Quote from @Matthew McKee: If you want a holistic view of your returns you need to factor in appreciation which typically beats cashflow, amortization, and the ninja perk; tax advantages.