In my case, I am encountering this problem and did not effectively perform the BRRRR as best as I could have.

And I'd bet your 'Contractor' is not licensed or is not very good compared to typical standards...But good luck....

.: Quote from @Barry Clay: Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida.

We have several rentals that we have purchased over the years near the Woodlands/Conroe area that have performed much better for cash flow with the same appreciation %.

If they perform poorly, you are out the rent income or their paycheck, and you have to pay to fix the problem.

Also interested in Andrews feedback on the deal performance and the property management experiences.

To add to what @Jonathan Greene wrote:1) Understanding the local market, so you know what Neighborhood Class your building is located in, what Class your Building is (condition & amenities), and what corresponding class of tenants will be attracted.2) Using all this data to properly set your expectations and a realistic ROI.3) How to better screen prospective tenants, including catching fraud, so your property performs better.

It typically involves the following steps:
1.Seller Deliverables. Request a detailed list of documents and information from the seller, including financials, leases, contracts, capital expenditures, surveys, environm...

Most of the regs prohibit it within the city, so I would check and see if the area you are looking allow it.Your best bet is to look at the markets on VRBO and AirBNB and see what is out there right now.

.--- Tactic 2: Focus on Fundamentals: Zell emphasized cash flow and property performance over speculation.--- Tactic 3: Diversification: He invested across various real estate sectors, reducing risk.2.