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.

🔍Screen Students ThoroughlyCheck credit, references, and require a guarantor (typically a parent) to reduce financial risk.

Daughter does not currently have lease, but that can be done if required. 

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

The way I recommend my clients avoid problems is to only buy nice building in areas with high quality tenants, I cannot stress this enough for new investors in Chicago.

What’s the minimum a partner needs to do in an LLC (owning rental property) to be considered active enough to avoid it being labeled an investment security under the Howey Test?

There are certain strategies you can take advantage of, certain things to consider to avoid hurdles later in the process, and expectations required with utilizing your loan.

If we look at a property, we can see most of what is required. 

Quote from @Michael Smythe: @Trent Paulk what are you going to do differently to screen a new PMC to avoid what just happened?

"my client doesn't want to hire an attorney to help sort things out as they're trying to avoid that expense."