@Penny PengBig piece missing here - what is the best component ?

You’ve developed a moderately fast wealth accumulation strategy that’s relatively low risk, enabling you to ride out down cycles, negative cash flows, unexpected necessary expenditures, etc.  

We’ve since tightened up our due diligence process.Has anyone else dealt with an unexpected 80% vacancy in what seemed like a stable property?

My friend said his client nearly bailed when she found unexpected wiring issues behind the kitchen walls..apparantly the seller hadn’t touched that electrical since the Reagan era..but with a patient electrician who understood the local code and a carpenter who improvised a shelving trick in the diningrom, they ended up selling above asking.Flipping and building can get tricky, especially once you start thinking bigger.

There are a couple of key components to this.

You might hit a few bumps in the road...tenants who imagine due dates are more like suggestions, or unexpected repairs that crop up at the worst possible moment...but that’s part of the ride.

When we did it, we did score some great deals, but what we found was that we were visiting so many properties to understand our "strike price" (the maximimum we would pay for the property when taking into account rehab costs, hold times, interest on any debt, closing costs, real estate commissions, a contingency reserve for "unexpecteds", etc) that the math started to not make as much sense.

I really needed some money from this hard money loan for some unexpected expenses that I had, so I had to go back and forth with them several times, but I did eventually get a payment.

I feel like every project has its curveballs, and sometimes it’s the unexpected stuff that teaches us the most.

Then your strategy of offer full price and then negotiate down / what if they say we will fix the repairs then you would be forced to close and lose your EMDNot sure where you came up with this but many will view components of this as unethical and why investors get a bad rap from politicians