Making the wrong hire, overlooking the risks, taking on too much debt.

Quote from @Charles Fay: Hello all, first time posting and wanted to ask for your advice.currently in the military awaiting a 9-12 deployment within the next 6 months.I will have ~150k savings after deployment, 85k before, with no debt, payments or anything other than basic bills, 750+ credit.

Usually its because there is a lot of debt risk. when interest rates went up a year or so ago I lost over 300k in sydication projects I was a part of because I didn't understand this concept.

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

I like targeting outside of where I would live for SF and small MF (1-4 units) because of the lower entry price, usually higher cash flow since your rental income is higher relative to your debt service, and your appreciation potential is high if you can read the writing on the wall.

Eliminate debt, establish a budget, and save.

It's the concept of buying the debt attached to the mortgage rather than buying the house. 

I have basically zero debt these days .. 08 I had 40 mil in debt big diff :)  I can smile now but it was not funny as you know ruined many folks lives. 

From experience, I’d recommend getting pre-approved, improving your debt-to-income ratio if needed, and researching local assistance programs.

What doesn’t work today may work in the future.Another challenge with the traditional BRRRR model is the resulting high debt load often isn’t fully covered by rental income, especially in today’s high-rate environment.