I wonder how many investors would be wiped out if 1 deal went south on them unexpectedly.

Just because the HOA has low Association Dues does not mean that it is collecting enough money to cover it's operating cost and saving in the case of an unexpected maintenance emergency.

They will shop what you have and need over various outlets much faster than you can do yourself.

I'm not talking about unexpected problems--crap happens to everyone from time to time.

I own several SFHs in the lower end of the scale (20k-after-rehab-ish) and while those rent for 550$ on average, some months I may see 20% of that in net income, and most of the time like Jon side, when I get hit with something "unexpected" it may take a big chunk of the gross since while the house is cheap, maintenance costs are high in comparison.

I have heard many be surprised by unexpected expense that could have been avoided, such as sewer repair costs.Also I think a lot of new investors are optimistic on:-holding costs (including interest, taxes, utilities, hoa dues etc.)

If outlets, wiring or the circuit panel were under water, they may need to be replaced, even if they appear to be in decent condition.

There were multiple GFCI outlets that didn't work.

Keep $60 000 in a savings account to cover unexpected costs and expenses while you gain a little more experience about real estate investing.Secondly, try to purchase a fourplex in a "good" neighborhood for around $150 000.

(non working outlets, automatic garage door openers, toilets that take an extra flush, closet doors that come off the track ect, fireplace not working...)