(Fortunately, we were insured)Emergency Fund: Always have extra cash for unexpected events.Tenant Support: Keep good communication and support your tenants through tough times.Final ThoughtsThis July 4th was a disaster, but it’s also a stark reminder of the unpredictable nature of real estate investing.

I'm surprised that you can rent out a unit without a stove. 

Susan, what I am learning from you is both surprising and very valuable.

Do a deep dive on the property too, checking it's all clear to sell and there aren't any hidden surprises.

The first time I went there I was surprised how underdeveloped and relatively inexpensive it is.

So....... with my previous CPA (who has since unexpectedly retired) we did a cost segregation study on an asset that was placed into service in 2021 which broke down the bonus depreciable items into 3 buckets, a 15 year bucket, a 7 year bucket, a 5 year bucket and the rest would be on a 39 year straight line depreciation schedule as it is a short term rental.

Since you mentioned retirement its always good to be prepared for the "What if factor" meaning "If" something should happen or come along unexpected.

Hi Jay, that's a great introduction and it seems like you have an excellent background for real estate.I have to say it's surprising, like you said, to see someone focusing on RI vs. other developing markets like OH and FL, but with enough work it's still possible to find something that cash flows here, too.

A common rule of thumb is to budget around 1-2% of the property's value annually for maintenance.Management Fees: If you plan to hire a property manager or use a property management service, factor in their fees as part of your operating costs.Contingency Fund: Always include a contingency fund in your budget to account for unexpected expenses or fluctuations in operating costs.Financial Modeling Tools: Consider using financial modeling tools or spreadsheets designed for real estate investment analysis.

To make a really long story short, I have just completed a Short-Sale of a single-family home a business partner and I built in Horseshoe Bay, Texas, right outside of Austin, Texas.Our Operating Agreement states that we are to split 50%/50% of all expenses within the business and treat any unexpected monies due as loans and paid back equally amongst the partners.