Ensure you account for expenses like maintenance, vacancy, or capital expenditures.

This unexpected expense turned what was promised as a cash-positive investment into a cash-negative one—the first in my investing career.To make matters worse, I lost $21,000 due to the property managers recommended by RTR.

Here's the challenge: If the numbers work with a low down payment, why wouldn't an investor putting 20%-30% just buy it and could likely offer more?

Because my DIT is low, maybe Case 2 for fourplex is my preferred loan type than Case 1 if I want to invest locally.

Management & Leasing FeesManagement Fee: 10% of the monthly rent = $180/monthLeasing Fee (Tenant Placement): 60% of one month’s rent = $1,080 (one-time)Lease Renewal Fee: $250 per lease renewalUpfront & Annual FeesOnboarding Fee: $350 (one-time for setting up the property)Annual Administrative Fee: $45 per year (for statements and 1099s)Reserve Fund Requirement: $300 (held for maintenance and expenses)Maintenance & RepairsOrdinary Maintenance: Any repair costs exceeding $300 require owner approval.Emergency Repairs: Up to $300 without prior approval; HVAC, plumbing, and electrical repairs can go up to $500 without approval.Home Warranty Claim Handling: $40 per claim (if applicable).Multiple Quotes Request Fee: $100 per request if you require multiple vendor quotes.HVAC Filter Supply Fee: $195 per year per HVAC unit.Repairs & Improvements: 10% markup over vendor invoice cost.Additional FeesInterest on Unpaid Sums: 10% late fee with a $39 minimum per month.Paper Check Administrative Fee: $20 per check if not using direct deposit.Insurance Documentation Penalty: $40 per month if proof of insurance is not provided.Eviction Protection Program (Optional): $15/monthProperty Damage Protection Program (Optional): $25/monthTermination FeesEarly Termination Fee: Equal to the management fees for the remaining lease term.Vacant Property Termination Fee: $500 if no tenant is in place.Transfer to Another Manager: $500 file transfer fee. 

Options:If you’re managing the property, her portion of expenses could be adjusted.If you sell later, the equity split can reflect your upfront investment vs. her contributions over time.Q3 - What else?

Now there are tertiary markets in the US that will be low value assets but not super high risk those are your smaller towns but your upside is severely limited.

@Kwanza P. 780+ pretty much gets you all the same rate regardless of being in the low to mid 800s. 

i know that's not what anyone wants to hear right now, but the huge rise in home equity over the last 5 years has made equity seem like it's free money and it's absolutely not, in fact it's extremely expensive.  

If you had to hire an attorney on your own to advise you on this stuff, that makes the self-managing rather expensive.