I think new investors heavily overlook the skill component needed to successfully pull off a renovation to then rent out properly.

Many of them might be skilled folks but they are not always the best estimator and business person. 

I know there is a huge shortage of housing and that has driven up price in the past couple years (along with other factors such as the pandemic, population growth, etc) so, I see listings for 2br-1bth for up to 2200 on places like Zillow, Redfin, etc.  

Some of us have a lot of experience and could make that $20k stretch into something, but we have skills you don't.

There’s an obvious housing shortage here in SoCal.

Lean into that skill to find deals where others might overlook potential. 3.

Poor personal finance skills.

I came in and paid his arrears plus his escrow shortage on top of putting money in his pocket. 

You'll want to work with people who are highly motivated and skilled in their field. 

The deal fell through because I couldn't line up the financing during COVID......God/Universe has a way of looking out for us...As investors, a crucial skill we develop is to take our emotions out of the situation/deal, but that is hard when we have invested a lot of time and money into a deal.