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.

Hello I've been saving up my money since I turned 19 and I'm now 30 and I've saved $120,000.00 and I'm wondering what I should do to proceed, my options are sell almost all of my stock portfolio and buy a rental house partnering up with both my brother ,this would be thier 3rd deal for the oldest and second deal for the middle child I'm the youngest so it would be my first deal mind this was what has been my plan since 16 and I've read tons of books on real-estate investing aswell, or a friend recommend I get a financial manager to stock invest for me, so I'm wondering  should I sell all or most of my stocks for to get into real-estate also I'm reading a book called the intelligent investor so I could also just follow those rules and invest some in an index Berkshire Hathaway and the rest in rock solid companies that aren't going away like the book I read says, what should I do ?

For some context, with MLS data, last year in Madison, the median sale price of a 3 bed, 1-2 bath home with under 2,000 sq ft above grade was $394,960 and average almost $419k and similar pricing in Dane County overall as buyers move out to surrounding communities in search of more affordable options.Milwaukee is a big market I am not that familiar with as I live in Madison, WI, but if you decide you have an interest in Rock County, prices can get in your price range in places like Janesville and Beloit, WI, but still mostly above $120k (median sale price last year in Rock Co with that home criteria was $253k, but sales did take place in your price range if you end up in that area of south central WI. 

You rock!

If you are planning to stay a couple years many things will change and you'll likely end up making a totally different move than you are planning on now.But Like I said if it betters your current financial position in a way that matters to you, rock and roll its a great move. 

Hi Steele for any conventional loan you unfortunately are stuck between a rock and a hard place as Fannie and Freddie will make you wait the 12 months.

For example, researching my market, Little Rock, it says:🏘️ Little Rock, AR – SFR Investment Market Overview🔹 Market SnapshotMedian Home Price: ~$190,000 (well below national average)Median Rent (3BR SFR): ~$1,200–$1,450Rent-to-Price Ratio: ~0.7%–0.9% (higher in some zip codes)Cap Rate Potential: ~6%–9% (depending on neighborhood & condition)Vacancy Rate: ~5%–6%, lower in workforce housing neighborhoods📈 Why Investors Like Little RockStrong Rent YieldsHome prices are low relative to rent, ideal for cash flow-focused investors.Many zip codes in Little Rock exceed the 1% rent rule.Landlord-Friendly LawsArkansas ranks among the most landlord-friendly states.Quick eviction process, low regulatory friction.Diverse EconomyMajor employers include healthcare systems, state government, logistics hubs (FedEx, Amazon), and aerospace.Home to the University of Arkansas for Medical Sciences (UAMS).Stable Tenant BaseHigh percentage of renters (estimated ~42–45% in Pulaski County).Strong demand in B-class and workforce neighborhoods.Underserved by Institutional InvestorsLess competition than Sunbelt cities like Dallas or Charlotte.Room for growth and acquisition before prices inflate further.I agree and find the above accurate!

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.

Probably because of the location is C+/B-. 

Know what you're buying: more work than B and A with better cashflow.