In the case of GEG, we let our members know we did not have a track record with them - they were new to us and just being tested - and therefore it was even more important to perform thorough due diligence since we can't be involved in the transaction. 

I should also mention we shut off the breaker (to the garage) after confirmation from two electricians and our contractor that we had a serious fire risk.   

And therein lies the risk of high-leverage.  

I have one more year left, but am eager to get my real estate wheels back turning.This year 2025, I am looking to get my foot back in the pool and become much more involved in the real estate community.

That said, realistically, I don't think you can go below the 6% - 6.5% range.One question I would ask is if that 3% can be better spent somewhere else to de-risk your deal.

It was a big risk and I nearly missed.  

There is risk with any investment, anywhere, but airbnb does well here - if you buy the right place.Locations: this is important.

You are definitely taking all the risk when buying from these sellers, especially if you only rely on the inflated ARV's etc that they provide. 

Ok, next let's remove all the high risk; bye-bye sec8, D/C class, per room rentals, STRs, all that big variables stuff GONE. 

Whie DOS lender risk may or may not be high, being ininsured is... well, enjoy your 'asset protection'.