Its been a wild ride though doing all this through massive inflation and supply chain issue and Covid..  

That usually creates a big supply of rentals on the market that it 's hard to be absorbed and create a race to the bottom in prices, as all the properties are pretty similar and in brand new condition. 

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.

Housing supply is the other function, and my view as rates increase so does inventory in markets that are coming up to pre-pandemic levels and the inverse in the one's that are decreasing. 

@Jay Hinrichs @Jonathan Greene @Nicholas L.you have all helped me to really consider what type of challenge / path I want to get into, and all this information is excellent.

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

However, some challenges to consider are the additional paperwork, property inspections, and potential tenant turnover.

Then you'll have to supply a lot of expensive wood for that fireplace and the outside fire pit. 

I know a few more people who's purchasing with him, from what I hear, every single closing was delayed due to supply shortages or other reason. 

Even better, I might be able to snag it well under market value since it's an estate sale that's been sitting on the market for nearly 200 days.Here’s the challenge: while I could afford to purchase the property under market value, I’d be stretching my budget thin to cover the mortgage during the period I’d be remodeling the basement to make it rentable.