Purchase price: $2,800,000 Cash invested: $560,000 The property is a three-story multi-family residential building with six independent units, initially facing significant challenges due to poor conditions.Renovation Investment Summary:- **Structural Repairs:** $250,000- **Kitchen Modernization:** $100,000- **Bathroom Updates:** $50,000- **Exterior Improvements:** $100,000- **Holding Costs:** $50,000- **Property Taxes:** $30,000- **Insurance Costs:** $10,000- **Management Services:** $10,000

Two of the biggest challenges I face are that I’m not very liquid at the moment, and the Seattle area is extremely expensive.

Functionally, it operates as a 2-story home since the downstairs area has multiple windows in each room and plenty of natural light.

These costs for most of the individuals are considered personal in nature (unless you have a RE portfolio that is run like a business; see below).

@Maria JeanetteRenting to tenants in assisted housing programs, like Section 8, can have both advantages and challenges. - Consistent Payments: The rent portion covered by the housing program is guaranteed and paid on time, reducing the risk of late payments.- Large Tenant Pool: Housing programs often have waiting lists, so demand is high.

Accepting any payment will make eviction more challenging but some states/localities prohibit you from refusing partial payments, so you have to know your local laws.

@Celine Besson there will be several challenges:1) Finding a Grate Property Management Company. - See our copy & paste advice at the bottom of this response.2) Managing the Renovation- Everyone thinks a PMC can easily do this. 

. • Documentaries: Check out The Queen of Versailles for insights into the challenges of hotel investments. • Podcasts: The BiggerPockets Commercial Real Estate Podcast has episodes on niche asset classes, including hotels. 

Hi Jonathan,Congrats on your first big renovation deal—it’s an exciting challenge!

Challenges?