Many of these make more profit on a bottle of soda than on 10 gallons of gas.The other model is Gas + auto repair / inspection / sales. 

Purchases Price 170,000 Cash invested 35,000Hard money at 10%Repair cost: 40,000ARV: 275,000 (TBD!)

300k - 5% down at 7% yields about 2800 mortgage, PMI, insfor easy number after reserves for cap-ex, repairs, vacancy, water/sewage - $3800I do not plan to live in the property.

Issues like contractor delays, supply shortages, or unforeseen repairs can extend your timeline, which adds to your holding costs (mortgage, utilities, etc.).Tip: Factor in extra time for delays and have a backup plan to stay on track.Over-Renovating: Many new investors fall into the trap of over-improving a property, especially when they try to bring in their own taste.

There could be many, but usually the main issues that could break the deal would be Foundation, Plumbing, electrical issues where it could be costly to repair the property @Carlos Valencia @Albert Bui

Then literally hundreds of these of come across my desk seeking financing - and typically the pro forma looks great while the actual historical financials show almost no more profit than Simple long term rentals after paying management fees, higher interest rates necessary for these type properties, increased repairs and maintenance, and faster depreciation.There’s also a personal reason I don’t invest in these properties ( I DO finance them).  

Make sure to factor in 5-10% vacancy, taxes, insurance, mortgage, repairs & maintenance, lawn care, pest control, management fees, utility costs (goes in your name when vacant), turnover costs, and capex reserves. 

At the same time, housing operators are havingto repair damaged units while insurance costs spiral ever higher.Thebottom line: Revenues are falling while expenses are rising.Thereare no quick remedies.

I fall into the badly camp (so far until the property stabilizes after 2 to 3 years),  lots of repair issues.

Make sure the lease includes all maintenance and they need to be in charge of all interior repairs.