For the lender for this type of program, clean credit is no late payments and no high credit card balances.

If pass-through benefits change, it could shift the balance between S-Corps and LLCs for active investors.

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.

A % reduction in rate doesnt always tell the full story because a 1% reduction on a loan balance of $100k wont save much, but a half percent on $600k will save a fair amount. 

I collect $375,000 at closing for the real estate, plus the now $35,000  balance owed on the business note. 

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.

By the time we evict, we usually have balances-due around $4,000, sometimes more, depending on circumstances.Steps:1) Go to Small Claims Court (in most leases filing fees and attorney fees can be added to the debt owed by the tenant)  Bring all your tenant-related paperwork showing what they owe you.2) Get a money judgment from the Court3) Hand that money judgment off to a collections agency that will go try to collectIs it worth it? 

I want more balance and freedom.2. 

I'm exploring my first real estate investment and have identified a potential opportunity with my parents' home, which has a remaining mortgage balance of approximately $64,000.

Thanks much in advance.If the family plans to keep the home and rent it for income:→ HELOC or Cash-Out Refi = Best balance of control and accessIf the family plans to sell the property after reno:→ Hard Money Loan could make sense if you want to avoid income docs and move fastIf the owner is elderly and staying in the home:→ Reverse Mortgage + renovation funding from line of credit may make the most sense