- Were the cash flow metrics tough to meet compared to traditional approvals?

Hi BP community, I’m Lisa Hentrich, founder of Golden Key Acquisitions LLC, based in Kauai, Hawaii.I launched my real estate investment company to create fast, fair solutions for sellers and strategic opportunities for investorsespecially in off-market land and wholesale development.

The key is finding places with year-round demand drivers (universities, hospitals, corporate hubs, outdoor recreation, etc.) rather than seasonal tourist spots only- Cash flow vs. wealth building.

Engaging with other investors can provide real-world insights and opportunities.Workshops and Seminars: These can be invaluable for learning directly from industry professionals and for networking with fellow investors.Real Estate Software Tools: Familiarize yourself with tools like Zillow, Redfin, or PropertyRadar to analyze market trends and property values.Remember, the key is to continuously educate yourself and stay updated with market trends.

Short-term rentals can be great, but they require more active management and regulations vary by market, so I usually suggest layering those in later once you have steady long-term income.The key is to grow in a way that keeps you comfortable and solvent while still moving toward your bigger 3–5 year goal.If you’re looking at the Indianapolis area, I work locally as boots-on-the-ground project management, helping out-of-state investors oversee rehabs, contractors, and timelines.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.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.

Also what analysis tools to figure out the profitability metrics for income and growth.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.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.

The software continuously checks the MLS for properties which meet both the metrics of the treatment organization (Oxford House, for example) as well as our clients cost, income, and ROI metrics, to see which homes satisfy both conditions.For example:-Our clients may want to spend no more than 500K, be in specific zip codes, be buying cash and want a certain ROI.

what is the market this was in, and what metrics did you look at to know that it was worth it or the right time to expand?