Market Fluctuations: If the market value drops, you could end up paying more than the home is worth.

I think, in general, unless you're an extremely high W2 earner just looking to get into real estate for tax purposes, buying for cash flow gives you the durability to weather market fluctuations as you're never in a position where your back is against the wall and you need to sell... unless you have debt coming due.Now, that being said, if the true cash flow, after allocating for all expenses, vacancy, maintenance, capex, etc. is in the black, then I think taking a 5% CoC return in an appreciating market isn't a bad move, especially if there is a component of value-add. 

While we should be very diligent in our due diligence, there can be many hidden surprises creating fluctuating repair costs and changing the useful life of assets. 

My income also fluctuates so I can completely appreciate your question!

The short term market fluctuates, but long term, holding real estate is very, very rarely a bad play.As a renovator myself, I always try to hold instead of sell, that is why I prefer the term renovator, not flipper.

You might also want to have a contingency plan for managing rate increases or fluctuations in your rental income.If you'd like to discuss this further or explore other options that might fit your strategy better, feel free to reach out.

However, I'm not very sure what the lien amount should be given my remodel costs could fluctuate quite a bit. 

I always try to use NNN when possible since it provides the most financial advantages for the owner and protects them from fluctuations in taxes and property insurance (which is a huge protection here in Texas). 

.📈 Market Flexibility: Real estate markets can fluctuate, but with the right strategy, flipping can be profitable even in a down market.👥 Network Building: Meet contractors, real estate agents, and other investors.

I would rather keep my money in a high-yield saving account and get 5 percent annually than be stressed by the stock market fluctuation.