Challenges?

There are a few ways you can handle the renovation which all comes to personal preference.

I do not care what the source of the return is  Historically the highest return is via a value add and appreciation and is more so recently due to the recent rate increase versus earlier this century (before 2022).However, most new RE investors cannot handle extended periods of large negative cash flow.  

Manny challenged that.

Risk that the IRS will challenge it, which is far more likely than with a full-service professional report3.

What are your current goals or challenges in real estate?

Investment properties prove to be more challenging, but not impossible when titled in your own name.  

If you sell, you’ll likely face a significantly higher rate on any future purchase, which could make finding a cash-flowing property challenging.

Many banks handling tax escrow accounts for mortgages have mistakenly thought there was one tax due twice/year or totally missed one of the taxes.Investors should research the SEV and the Non-Homestead property tax millage rates to project what the property taxes will be after adjustment.

Of course, it comes with many different challenges.