Unless you’ve been living under a rock, you probably heard that Indiana FOOTBALL won a national championship last night in Miami.That sentence alone would’ve sounded insane not that long ago.Indiana was historically the losingest program in college football.

They already understand tenant-in-place deals, realistic returns, and the operational side, so there’s far less friction.A few things that have helped:• Create a private investor list/program specifically for off-market or “tenant in place” opportunities• Put together a very detailed pro forma using real management data rental history expenses turnover assumptions maintenance trends etc• Set expectations upfront that showings are limited and typically only after an accepted or near-accepted offer due to tenant logistics• Offer portfolio or management incentives for buyers who take on multiple properties or keep management in place• Cross-market directly to owners already under management before going publicThe right investor values the existing cash flow and stability and understands the constraints that come with occupied properties.

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

Sounds like some really flexible programs.

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.

In a market like LA, the primary goal is usually to significantly reduce your housing cost rather than eliminate it completely in year one.From a mortgage financing standpoint, this works because owner-occupied loan programs allow lower down payments and more flexible terms.

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.

This criteria is for 1-4 and 5-8 unit programs.

I was actually a student at the university there not too long ago, part of the wine program.

Here are some things to keep in mind:1) Make sure you’re running truly conservative numbers - assume higher vacancies, real repair and CapEx costs, rising taxes and insurance, and rents that are realistic, not just what makes the deal look good on paper. 2) Take the time to learn local zoning, rent regulations, and code rules before you ever make an offer, especially around NYC where non-conforming or illegal units are super common and can completely derail a house hack.3) Talk to a few investor-savvy lenders early and really understand your low-down-payment options (FHA, conventional owner-occupied, grants, assistance programs) so financing doesn’t slow you down once you find a deal. 4) And finally, build relationships with an investor-friendly agent, a CPA who works with rentals, and ideally a mentor who’s just a few steps ahead of you.