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.

This can potentially let you offset income with deductions and may help you qualify for tax breaks like those under real estate professional status — but check with a tax pro, as it depends on your hours and other income sources.LLCs & tax strategy:Setting up a cleaning or property management LLC could help you properly expense cleaning and maintenance as a separate business.

really depends on which state you are in 

Depending on the terms of the loan, it could be a viable option.If you do plan on renting with the property, we may recommend the formation of one or more LLCs for asset protection and potentially anonymity.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice.

Totally depends on your expectations and how realistic you are.

We have 3 attorneys we use depending on location & situation. 

Depending on how the property is zoned, you may need a variance, rezoning, or to formally subdivide the lot to make it legal for another dwelling.

Pawley,In my opinion, the question around what would be fair to your investors depends largely on a couple of different things:- How much time/energy will they put into the project or will they just have money in the deal?

I think it is going to be dependent on how long they are living there.Why still include the utilities if they are going to be long term?

I’ve seen some success on Furnish Finder, but it really depends on unit location, parking, proximity to hospitals, and how well it’s set up.Bottom line: you’re not crazy for holding on and trying to play the long game—but don’t ignore the opportunity cost.