Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.

Exit value, location, and condition all matter if you ever have to take the property back. • Leverage looks different.

If you don’t believe in BiggerPockets message or mission then what are you doing here on the forums exactly??  

For me, it’s easier to make up the difference by having a fuller calendar rather than playing around with exact fee offsets.I’d rather price competitively so I stay attractive in search results and let volume carry the revenue.

@Andrew TrevinoWe’re a Property Management Company (PMC) and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC.In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.

@Ladarius PayneLove the mindset, LaDarius — coachable, consistent, and committed is exactly how you win in this game.

All equity.I forget the exact amounts, but I think on the equity,  I (we, really, because it was my wife and me) put in 50% of the equity and had an investor that was a close friend put in the other half.  

I will honestly tell you exactly what I did and how I was successful and helping clients win. 

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.