This acts an extra safety net as the bank has to vet the deal just as much as you do. 

Understand A/B/C class neighborhoods and what we want to invest inCheck safety/crime, schools, things to doCheck if state is landlord friendly or tenant friendlyCheck regulations within each stateCheck if properties fit 1% rule and run analysis on numbersNarrow to 2-3 markets.

I don't understand why the owner of that property would not keep up with the maintenance, but the fact is that they kicked everyone out of the complex and it has been completely empty since the beginning of this year due to safety hazard issues.

Fha wanted all these mandatory repairs for safety, and the GC saw dollar signs.

I also used the crime map from realtor.com and trulia to give me a  general feel of the safetiness factor.

Your 401k is a book safety net and the “at least you have something saved” Incase REI doesn’t work our.

I would first try to get a loan if safety or code do not meet the loan, I will pay cash.

That means underwrite conservatively with margins for safety and don't over-leverage and you'll be fine.

I anticipated putting about $4000-$5000 into it to address a few safety issues, make a few repairs and get it rent ready.

It has recovered nicely but that is something that may happen again.Note that the S&P500 in the past two years has been about 15% IRR so this is great for diversification and it may keep pace with the market in the long run but true full diversification is also important.Bottom line, as far as I am concerned, I would give a green light to Fundrise with the caveat of a reocmmendation to diversifying between multiple offerings (I like wide diversification for safety).