It is challenging to build an underwriting box for something that fell outside an underwriting box.

@Samuel Coronado - the challenge is that there will likely be a very small number of renters looking for a house that size, as well as that can afford a rent amount that high who won't just buy otherwise. 

Challenges?

Most people think real estate investing requires huge capital, perfect credit, or bank loans—but that’s not always true.

Challenges?

Securing quotes for properties in flood zones can be challenging and time-consuming (especially if vacant), so it’s unlikely you could have done it quickly.

Our portfolio currently cash flows, but cash flow isn’t our top priority right now since we plan to use this portfolio to supplement our retirement in 12 years when I leave the Army.My biggest challenge is committing to an out-of-state market.

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

Detached HousesWhen in doubt, consider the tried-and-true detached single-family house.

True, converting a personal Schedule E to a partnership will indeed reduce your IRS audit chances, statistically speaking.