In your mind, is losing $9,500 worth saving $195 per month? 

Business owners won't want to get tied up in litigation and if there is a good chance they will lose, it is easier to simply follow the contract.How would that work with a lower-end tenant? 

@Bruce Woodruff points out you can lose all your money and more. 

There is still a risk: You do not have the right outprice and lose money, your deal goes south due to unfound things when you bought it, then the rehab phase brings them up, and you spend more, and the market changes, which is something that can happen on a moment's notice.

Why would I be cash flow negative and losing money for years and years?"

I bought Class C in Indy in 2023 (move in ready) and am losing money each money on what was supposed to cash flow on paper just barely $176 if no repairs were called in. 

This resulted in literally weeks of delays, which contributed to the closing being postponed and rescheduled, losing our locked interest rate.A big gap in the overall Kiavi process is that we never received detailed introductory emails about the steps of the refinancing process.

My recommendation to serious real estate investors is buy an opportunity in any segment, do the math (it's all about the ROI; some investors fall for the 'commercial' is more prestigious chest thump to find that losing money isn't very prestigious at all), and plan on proactively running a business. 

This requires consistent oversight and experience, which most investors simply don’t have.The Bottom LineIf you want to lose money and risk expensive legal fees, go ahead and self-manage.

As long as I do not lose money I think I'll be ok with that.