One of the other investors that I was speaking with was threatening to turn the story over to the television program American Greed.

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.

Quote from @Maydiray Tate: I graduated from college with two construction certificates and have the knowledge to build a home from the ground up.

More flexibility for programs and rates for clients. 

I do my own programming to get alerted for new listings, and do my own calculations.

There are some creative "non-QM" programs that might also be available to you. 

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.

If the negative cash flow is manageable and doesn’t block future investing, holding for flexibility may be the least bad option — but I wouldn’t force a large cash paydown just to feel better about the numbers.Have you considered operating your home for transitional housing to homeless veterans (VA-VASH program), senior care, etc.?

Many of these were part of our early access program and received information on the project before the webinar, but overall because people know we sell out right away they submit their soft commit, and then do their due diligence before wiring their money.

A lot of borrowers that are self employed have solid personal or business cash flow, but DSCR just doesn’t work because of conservative rent calculations, higher insurance costs, or interest rate pressure.With a bank statement program, qualification is based on 12 or 24 months of business or personal bank statements rather than strictly using property cash flow.