But if you’d never looked at a contract and never looked at actual hard money rates and you really wanted cheap money I guess you could fall for it.

If you as the investor were to fall into some predicament then your flips suffers (this is per my scenario and still fresh in the flip game, with no PM or well grounded structure).

I currently live in Falls Church, Virginia (Fairfax County) and am thinking about converting my basement into an apartment and renting it out.

I currently live in Falls Church, Virginia (Fairfax County) and am thinking about converting my basement into an apartment and renting it out.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Run the numbers.Based on your scenario of $500/month, $6k/yr & an $60k property (low end):1 - It would take you 10 years, if all goes perfect, before you got your money back...and then invest in the next property, where...2 - You would immediately fall behind by another $80k (assuming after 10 years, $60k property now costs $84k), and it would take 6 more years ($7k x 2 properties) to break even again, before you invested in another property (assuming all has gone perfect for 16 straight years now...not going to happen).3 - After the 2nd property is made whole again, you buy your next (3rd) property, and you would immediately fall behind by another $105k (property now costs $105k), and it would take around 5 more years ($7.5k x 3 properties) to break even again, before you invested in another property..Let's take stock of where you would be at this point. 

Any investment out of the urban area one needs to plan and have fall back plans.

There are many speed bumps, deals that just fall apart, and people who change their mind on you along the way.

Leave your emotions in the bedroom.I can often fall victim to hubris.

STR in the Mount Snow VT area, I just started this fall, it is a family owned house.