@Jessica Yuan you are entering RE at a challenging time were a lot of long time investors are sitting on the sidelines when it comes to but and hold.You will qualify for a little more if you but a multi family as part of the rent goes to the income qualification.

This particular clients timing was optimal as they were in contract prior to the Bill passing and closed last week.

Savannah is a great tourist city and has had a lot of progress over the last decade.

How long have you owned it for?

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.

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.

I live in Chicago but invest in Indiana.I want to get more active here again because although I have learned a lot of valuable (and expensive) lessons, I know I have a long way to go.

They do not in general look at the investment quality of the property.I suggest you post your underwriting to have more experienced eyes on the underwriting.  

@Richard Helppie-Schmieder Great thread, thanks for sharing Richard.I’m not a flipper myself, but as a broker and multifamily investor here in Honolulu, I’ve seen a few things that help operators scale beyond the one-off projects:Pre-negotiated contractor pricing for common items = predictable margins and faster timelines.Standardized design packages (2–3 finish sets) = bulk ordering + a recognizable “brand.”Exit flexibility (flip or rental refi) keeps deals profitable when the market shifts.Capital efficiency: some pool private equity into small funds or short-term syndications, similar to what we do in multifamily, so they’re not scrambling deal by deal.Interesting to see how these same principles apply whether it’s flips in Texas or apartments in Hawaii.Quick question: do your project managers just keep eyes on site, or do you give them budget/schedule authority too?

I got Joe's course back in the early 2000s and man was that ever an eye-opener.