What started as a promising BRRRR ended with us making the tough decision to sell at a loss after an unexpected disaster.The Numbers:Sold for: +$230KPurchase Price: $115KClosing Costs: $3KRehab Costs: $105K ($49K original rehab, $56K additional repairs due to the car crash)Holding Costs: $31K (12 months)Selling Costs: $16KInsurance Claim Recovery: +$25KNet Income: - $16KWhat Happened:This was supposed to be a BRRRR.

(My fiancé with an architect with a refreshing vision) What made you interested in investing in this type of deal?

Your perspectives have been incredibly helpful as I navigated how to handle the situation.Here’s how I just responded to the tenant:I expressed sympathy for their situation and the loss of their pets.

.- Additionally, you can track income and expenses consistently using software or spreadsheets.If you track everything, you could show a loss and use that to offset other earned income (such as a W2) which will net you a bigger refund.

DIL is a voluntary foreclosure.It is a loss mitigation option you have to apply for and be approved.

Given the cash flow loss on the 7% property, I think I need to remove the emotion and make the right business decision for my portfolio holistically.

I am at a loss to explain why anyone would buy investment property in any of the blue states, namely, Illinois, California, New York, New Jersey, and Connecticut.

Even if you rent at a break even or slight loss, if you could have 3 years of rental income offsetting your mortgage while realizing 3-6% appreciation, could be worth it, especially if you think appreciating for this area will exceed national averages.

Buckle up, and prepare for total loss, or an additional capital call or two in 2025.

However, the Cleveland area is a net population loss area.