When market changes, even the most sophisticated sponsor could collapse.At the end of the day, it's better to become "active investors" where you know every single bit of your investment, your market, your realtor, your contractor, what's the actual repair cost, actual rent, appreciation and so on and so on.

The house went through a full inspection with some minor repairs costing $1500.

Opportunities like this don't come along often and can be the foundation for your future.You just need to know what repairs are going to come due and when, and start learning about how to be a landlord.

I grew up in the industry and still have a hard time with holding contractors accountable.thx Adam - We agreed from the start that we would pay the $500 a month as they sounded great in an interview , go to town council meetings on our behalf , and do some in house work like put up blinds  and minor repairs that is included in that fee.

Purchase price: $55,000 Cash invested: $110,000 Sale price: $205,000 This was a 1950 raised home that needed extensive foundation repairs as well as all plumbing, electrical and subflooring.

I have a friend who has one in Florida where he doesn't have to do any repairs or maintenance to his unit.

Not only can you deduct mortgage interest and property taxes, but you can also claim deductions for property repairs, depreciation, and other expenses related to maintaining the rental units.Learning While EarningHouse hacking gives you hands-on experience as a landlord while you continue to live in the property.

It's not the same thing.If you have $130,000 in equity, I would not use any more than $65,000 on a new property and $15,000 of that should be held for reserves so you would have $50,000 for downpayment and closing costs really.Unless your rental property is new construction, you don't want to max out the equity in case of large repairs coming.

The buildings are getting older and they don't have the funds to do the repairs.

Make sure you have some money set aside for repairs and turnovers.