We also keep an inexpensive steam cleaner in a closet in case there are any accidents.

Real estate is a dynamic field, and adaptability can lead to discovering unexpected gems.Finally, enjoy the process.

Personally I try to reserve my HELOC for emergency or unexpected costs during a project, so if you can try not to use all of it for the initial purchase and planned rehab.

Since you’re learning on the fly, there are many more unexpected items that you have still yet to encounter.

  * your real estate being sued getting to your other assets (tenant falls and sues for all of your properties which had been your retirement plan)** you getting sued and it affecting your real estate (car accident where you hurt or killed someone) 

Unexpected Costs: Real estate has a lot of additional costs that aren’t always obvious.

Just make sure you’re financially prepared for the loss and have a buffer for unexpected costs.

This strategy, however, carries more risk and requires market knowledge to avoid unexpected costs or longer holding periods.If you want steady cash flow, go with the garage conversion.

You'll need around 20% of contingency for unexpected issues.

The property negative cash flows 400 dollars a month (not counting unexpected repairs), but I gain about $15K in equity each year paying down the mortgage.