People buying need to keep in mind the target audience a lot of young nurses in health care are not going to want to stay in the highest crime rate area of the city so pick carefully for the group you are targeting.

@Marc ShinIf you’re buying tenant occupied, make sure you get a copy of the lease, rent history, security deposit info, and a move in condition ifno as part of your due diligence. 

So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.We use the following to rank Property Classes, in order of importance:Property Tenant Pool: closely linked to location, but not always.Property Location: closely linked to tenant pool, but not always.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.

To find the best loan terms, request term sheets from several lenders, these documents contain all the key details you need, such as interest rates, fees, and conditions.

Instead of worrying about the label “tornado alley,” focus on the actual property features:How is the roof condition and age?

You can start by comparing recent sales of homes with similar house size and condition, but with varying lot sizes, to get a rough sense of what buyers are actually paying for the extra land.In your case, with a half-acre lot surrounded by larger ones, I’d suggest being conservative with your ARV estimate, maybe trimming it slightly unless you see clear evidence that lot size hasn’t mattered in recent sales.

Throw in that many first time home buyers are also the ones who could get hit the hardest with the potential increases in health insurance, rising taxes and property insurance. 

We do have the language below in our rental agreement, and we sometimes tell tenants that they are not up to standards and they are unlikely to get their deposit back if they move out with this unit in this condition.

An assumable loan can help you sell for more or move a home that might not even appraise due to condition isssues - I sold a property with an assumable VA loan that had the bathroom torn out and no flooring.If you’ve been waiting for a creative entry point into real estate, this might be it.If you've actually done an assumable loan, or have questions ask them in the comments!

Most hard money lenders will need conditions to be met.