They had no interest in returning the property to move in condition.

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

There is a home on the property that isn’t in the best condition that a family member resides in.

Some examples are: where the tenant should send the rent; how to reach out to the landlord; the anticipated timeframe for the landlord to reach back out to the client; the rules and regulations governing when, how, and why a landlord may visit the property; when rent is considered late and what the late fee will be, if any; the specific terms and conditions for that particular tenant, if different from other leases and tenants; how the security deposit will or will not be used; and any other state, or other governmentally required notice, term, condition, or clause that must be included. 

How are you supposed to know the condition what your offer is based on what the seller says?

You want buyers to picture themselves living there, not see reminders of someone else’s life.What else you need to do beyond these basics depends on the market:In a hot seller’s market, just price the home correctly to its condition and you’re set.In a balanced market, a good agent should provide you with estimated sale prices for three scenarios: as-is condition, partial renovation, and full renovation.

It’s important to understand that all properties sold at auction are typically offered “As Is” and “Where Is,” meaning the seller does not guarantee or warranty the condition or title of the property in any way.

Reasons are: building is too old (1956), systems are too old (electric updated in 1992), roof too old (metal roof since 1990s, great condition). 

For your first property, prioritize location, condition (avoid major rehabs at first), and cash flow potential.

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.