Real estate is often a deeply emotional business — and how we treat others can leave a longer-lasting impact than any spreadsheet ever could.Over the past year, I’ve been building a long-term strategy to transition into real estate investing as a core component of my financial future.I’m focused on buy-and-hold SFRs and small multifamily properties in strong Midwest markets.

Many people think all tenants are good, there is good cash flow on turn key LTR leveraged purchases, there are no vacancies and associated tenant flips, that all components in a property last forever, that property tax and insurance cannot increase significantly.  

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.

You loan was long ago packaged up into a mortgage backed security along with 100's of others and sold to investors.

For one of the SFRs on the lot we painted the cabinets that have been there since the 80s, and on the other one we could not keep the cabinet, kitchen layout and all due to it being built so long ago and never really being fully updated..

As long as $470k is around market value I'd be OK with that.A question you should be asking is what happens if the bottom falls out of the market and the house drops to $350k?

Working with an investor-friendly agent who also owns rentals and partners with a strong team of property managers and contractors gives you the most eyes on the ground possible.

How long has the property been on the market?

For me I feel shifting to real estate is the right play which is why we made the pivot last summer, but I am open to other perspectives.

The last five years have really changed my mind as to who is a good dude and not.