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.

Quote from @David Litt: I was looking at some recent foreclosure data and noticed something interesting:While foreclosure filings overall are still below their peak from the 2008 crisis, certain markets are seeing noticeable spikes year-over-year.For example:Some mid-size cities in the Midwest have foreclosure rates up 25–30% compared to last year.Coastal markets with high property taxes are also showing an increase, even though property values remain strong.Rural areas, surprisingly, are seeing some of the fastest jumps — possibly due to limited job markets and fewer refinancing options.What caught my attention most is how uneven the trend is.

I have a seller side strategy question.I've come across several note sellers selling newly created notes with significant discounts, such as a $50k note created in the last few months with an asking price of $40k.

Quote from @Casey Oleynikov: I would be careful in this current market on adding too much value, or pushing the money too much on a rehab because the market has more inventory so that added value might not be added value in the buyers eyes.

I am a Long & Foster Realtor working in residential purchase and sales.

Do you chalk it up to equity and long-term wealth, or do you pivot mid-project to force stronger returns? 

Harrison,You're on a smart path, house-hacking and scaling up with an eye for local opportunity is solid.For rehab analysis, read The Book on Estimating Rehab Costs by J.

I am a landlord of one property already for 3 years. it is a long term rental. but I am looking to acquire a second property. if anyone can offer advice or help I would appreciate it.Thanks

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 am grateful for this and we have worked our butts off for the last 6 years to build this portfolio.