Will you go bankrupt?

Just look at the state overall, pension funds are going bankrupt, taxes are extremely high, people are paying $3,000 for rent, homeless people are taking over the streets.

Never seen anyone go bankrupt that paid cash for everything.

Too much capital can be a bad thing, but it's impossible to go bankrupt without debt.Without a doubt, the hardest parts of rehabbing houses is finding the right house and managing contractors.  

Overall the Metro East seems like a good place to invest if you're looking for stability and low cost of entry, but probably not a ton of long term upside.Beware, however, that you're in The People's Republic of Illinois and their government is bankrupt both financially and morally.

The builder has since gone bankrupt.

TL;DR -- this deal will see me bankrupt or well on my way to property two.

@Jonathan Smith If you're at all familiar with Dave Ramsey's story, he went bankrupt due to the bank calling all of his outstanding notes.

There's so many paths to choose and each has its pitfalls and, yes, it can bankrupt you if you're not paying close attention or don't have the knowledge before starting out.

Thats easy ... knowledge.Look at how many real estate moguls have gone bankrupt only to recover two years later.Just last month I sold property that required 0 of my own cash.