As someone who occasionally works with these investors, I always try to emphasize the challenges that come with real estate like managing renovations, dealing with tenants, and navigating market fluctuations.

I don't count the quarters, but the overall monthly dollar volume seems to fluctuate quite a bit.

Right now, the majority of lenders are hitting DSCR loans hard, which is a strong indicator that the BRRRR method is still going strong, even in a higher-rate environment.We always say, “Date the rate, marry the property,” meaning interest rates will fluctuate, but the right deal will always make sense long-term.

Of course values fluctuate and this is over a long period of time.What LA and NY also have that other markets may not is high paying jobs mixed with no land to build more housing.

There are larger fluctuations in emotions as larger sums of money go in and out of your account.

No cash on hand meaning not a significant amount, fluctuates quite a bit.

Market Fluctuations – What if appreciation stalls, or rates rise, impacting your refi strategy?

Also, you can't know how the cost of materials could fluctuate over your project time, so consider purchasing any materials upfront so you can stick to your budget. 

I've had smooth loans close with Kiavi and I've had rough ones, same with Roc.When Loans start to be troublesome:1) The borrowing entity docs are a mess2) The appraisal numbers are lower than expected3) Messy background reports4) Loans happening in an environment where market/rate fluctuating unpredictably 5) Your loan officer and their team are poor at their job6) Title issues that depend on county docs, that can be slow and painfulThere's more but it's Friday and I'm tired....

Over-budgeting is critical to ensure that renovations don’t eat into your profits.Market Fluctuations: If property values in your area do not appreciate as expected, or if you face a market downturn, the amount you can refinance for may be lower than anticipated.Financing Challenges: Securing financing for the initial purchase and rehab, as well as refinancing after the property is rehabbed, may be challenging, particularly if the property is located in an area with fluctuating values or if the rehab work doesn’t immediately improve the property’s appraised value.Tenant Risk: Rent collection and tenant management can be unpredictable.