-Cash reserves: Set aside a portion of your $50k cash as a reserve fund for unexpected expenses, such as repairs, vacancies, or market fluctuations.

Our first handful of deals did not really have a value add component but we both realize that is the next logical step. 

This is one component that is rarely discussed.

Be aware of the risks involved in real estate investments, plan for unexpected costs, and stay informed about market trends.

It's been good, with a few unexpected issues.

The other component will be if these are from a HML, what is the borrowers experience?

As many of you are likely aware, this settlement is poised to bring some significant changes to how real estate transactions, especially regarding agent commissions and MLS listings, are conducted.Here's a quick rundown of the key components: Transparency in Agent Compensation: One of the major shifts will be the removal of agent commission info from MLS listings.

Here are some considerations for each option:Option 1: Using the HELOC for a down payment and renovation on a second property to rent:Pros:You can leverage your existing property to acquire another investment property without selling your current home.Rental properties can provide a steady income stream and potential long-term appreciation.You can use the HELOC funds for renovation, which can increase the property value and rental income.Cons:You'll have to manage the property yourself or hire a property manager, which can be time-consuming and add to your expenses.There is a risk of vacancies or unexpected maintenance costs, which could impact your cash flow.You'll have to pay back the HELOC, which will increase your monthly expenses.Option 2: Building a new house in a new community and selling it for a profit:Pros:You can potentially make a significant profit if the market is favorable and the property value increases during the construction period.Building a new house allows you to customize the property and potentially attract more buyers or higher rents.Cons:This strategy involves a higher level of risk, as you're betting on the market to appreciate in a relatively short period.There are many unknowns and potential delays in the construction process, which could impact your timeline and profitability.You'll need to have a good understanding of the local real estate market and construction costs to ensure that your project is profitable.Before choosing either of these strategies, consider the following:Research the local market conditions in Chandler, Arizona, to understand the current demand for rental properties and new construction homes.Consult with a real estate agent or investment advisor who has experience in the local market to get their insights on the best strategy for your situation.Evaluate your financial situation, including your income, expenses, and risk tolerance, to determine if either strategy aligns with your goals and financial capacity.Consider the tax implications of each option, as this can impact your overall profitability.Create a detailed financial plan for each option, including projected income, expenses, and potential risks, to help you make an informed decision.Ultimately, the best strategy for you will depend on your unique situation and goals.

Make sure you have some sort of inspection contingency in case the condition is unexpected 

This has been an unexpected financial hardship for us since this partner is not contributing financially, while the rest of us are trying to cover the partner's portion to complete rehab, etc.