By discussing the obstacles we've faced, we can help new investors be more aware of potential pitfalls and navigate their investment journey with a bit more foresight. 

Embracing the power of networking and strategic collaboration can significantly contribute to your success as a real estate investor.Common Pitfalls and How to Avoid Them:Market Analysis Mistakes: Make sure to learn how to avoid common mistakes in market analysis that could potentially lead to poor investment decisions.

Originally posted by @Nicholas Aiola:@Jonathan Bren The portfolio income tax exemption allows non-US investors to lend to US borrowers and not pay US tax on or file US tax returns as a result of the associated interest income.That said, there are a lot of rules and pitfalls to be aware of.This excerpt from a website (https://www.jdsupra.com/legalnews/the-portfolio-in...) sums it up pretty well:...as a general matter, if (i) a non-U.S. lender (which is unrelated to the U.S. borrower, is not a bank, is not a CFC, and is not engaged in the conduct of a U.S. trade or business), (ii) lends money to a U.S. borrower pursuant to (iii) a registered debt instrument, (iv) which pays a fixed rate of interest, and (v) the non-U.S. lender provides adequate documentation as to its non-U.S. status, then the interest payable pursuant to the loan should qualify for the portfolio interest exemption and, in such a case, no U.S. tax would arise with respect to such interest.I would recommend consulting with an attorney and CPA familiar with US/foreign tax laws to ensure all of the correct steps are being taken. 

A good agent will shrink your learning curve and help you avoid potentially very expensive pitfalls.  

They share their experiences, warn of pitfalls and provide fresh perspectives.

What are some potential pit falls to avoid as I begin?

The returns are good but it comes with the sacrafice of time.You hit on the major pitfalls associated with these properties, the killer is the increased turnover costs espcially if they come on the heels of an eviction which costs you money as well.

Youve already illustrated one major pitfall in selling it yourself.

There are lots of big $ pitfalls that you can encounter: second mortgage foreclosing, HOA foreclosing, other title issues, IRS liens, collapsed sewer pipes, burst water pipes from improper weatherization, to name a few.Start hereAbsolutely try to contact the borrower pre-foreclosure.  

This isn't even close to a comprehensive list, but the point is that you need to learn the pitfalls of each building based on the year it was built and do the due diligence so you don't buy a lemon.