You could also mitigate risk with a surety bond as well.

Moreover, for someone in your position just starting, it's best advised to partner with an experienced individual to mitigate risk and adequately learn the process.

Assuming they are professional and skilled in the craft - alot of the issues you have faced, they will remediate and mitigate moving forward.

This will allow you to mitigate risk on the first property but also allow you to do a cash out refi on the second, so now you have access to tax free cash that you can do with whatever you please.

Investors who are active in gathering data on local trends while working with knowledgeable agents are able to pick neighbourhoods poised for growth and also comprehend how to best mitigate their risks as they prepare to maximize their return.Myth 3: Distressed Properties Are in Bad LocationsAnother misconception is that distressed properties only exist in bad neighborhoods.

Part of those cuts included the short-term rental tax loophole, a strategy real estate investors can use to help mitigate their rental income tax by offsetting earned income with real estate losses, and could be renewed or extended.  

You might want to partner up with a friend or family member to mitigate the costs.

Co-living, on the other hand, mitigates this risk by creating multiple income streams.

Often times they come back with a list of repairs that they would like to see to protect the home or mitigate liability. 90% of the time those items were on our list to fix anyway, and sometimes we even haven't done before we get the letter from the insurance company.

Having strong agreements, clear communication, and contingency plans in place can help mitigate risks before they become major issues.