That pace feels pretty good to me...I can get past the "rookie mistake" phase of my career before there is investor money on the line, and I can "fail small" because SFRs and small multifamily doesn't hurt as much as larger properties when things go wrong.Timing had a role, too.

The plumbing will fail again, or you could get water under the house in another way.

If they failed to perform, you should have been able to terminate early and/or end your contract without penalty.

@Kyle TrotmanI would suggest speaking to local banks, and credit unions.

"What Is The Biggest Risk For 2025" And 13 Other Highlights From DB's 2025 Market Survey"The Deutche Bank 2025 global financial market survey had 471 responses from around the world, and was conducted between the 10th and 13th of December 2024.

Overall, you're spending $25k in extra costs and a monthly pmt that's $500 higher to keep $50k in your bank account. 

@Calvin Rappard I don't think it is feasible to do a new screening every year, and more importantly, I am not sure you have the tools to move someone out if they fail....

Seller is the Agent.Seller bought property in January of 2023 for $730,000Current “As Is” Value : $770,000Target Acquisition Price: $730,000-$780,000 After Repaired Value: $900,000Repair Estimate: $120,000Initial Offer Amount: $715,000Loan Program: Bank Statement Program.Total Estimated Monthly Payments (Principal, Interest, Taxes, and Insurance) $5500/month (based on $770k purchase price)Estimated Gross Yearly Income from Short Term Rental: $160,000 (65% Occupancy, $700 a night| (STR Listing Comparable properties Listing 1 Listing 2 Listing 3)Net Monthly Income after management and taxes: $11,751.25Net Monthly Income after Mortgage Payments: $6251.25 ($75,015) Per YearTotal Cash Investment: $297,000 ($177,000 in down payment and closing costs and $120,000 in repairs)Average Yearly Return on Investment: 25% yearlyAverage increase in property value per year: 5%Average increase in booking revenue per year 7.5%Property Value average after 10 years: $1.5 millionTotal Cash received over 10 years: $1.3 million.Total Equity multiple min over 10 years: 6x total return on $297,000 invested.

Since leveraging this tax strategy could save you significantly on taxes if you do qualify you might want to seek personalized advice, that's tough to get in a public forum, to avoid missing out or getting audited and failing audit. ...

@Daniel Medellin Regarding your question, it would depend on the lender or bank you're working with if you want to go that route in the future.