A property may look good on paper in terms of appreciation but might not generate enough cash flow to cover expenses and build long-term wealth.Not Having a Backup Plan:If something goes wrong in any phase, such as a longer vacancy period or higher renovation costs, it can disrupt the whole strategy.

The rent doesn't cover our mortgage completely, but covers a good 2/3rds!

This means a lot of units are sitting, and we're seeing a lot of price reductions, lower offers being accepted, sellers willing to help cover buyer closing costs, etc. 

But I'm hopeful that it's one leg of the stool for me that kicks in some business, and while it's not great math, I'm glad that I have already had the cost covered by transactions from leads.

They would like to keep the timeshare as they are reaching a point where they want to take more frequent vacations and it would help cover the cost of those trips.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

So, for example if a tenant was giving you a specific type of issue that was not clearly covered in the rental agreement you simply add it with 30 days notice and then evict for breaching the agreement.

Because we charge by the bed, returns are significantly higher than market rental rates, even when considering our rent covers ALL housing costs ex food.With today's opioid epidemic rampaging across the US, there is a massive need for well run transitional living facilities everywhere, but it is easy for good intentions to sour when the houses are not run properly.  

I will have enough reserves to cover the holding costs as well as some left over as emergency funds for the property.

Since you will have what I assume is an atypical unit mix, you will likely need to look at what different unit size buildings are selling for.I.e. 5x 1/1s are $250k/door.  4x 1/1s are $265k/door and 4x 2/2s are $325k/door, you could assume covering to a 4 unit will value the property at around 1.12mm (3x265 + 1x325)vs 5 one beds being worth 1.25mm.