Include an exit strategy, tax planning, and insurance to protect both parties.

Staying proactive not only protects your tenants but also safeguards your investment.

@Chris Kay finding a quality, cost-effective contractor is extremely difficult:(There are thousands of contractors that are great talkers, but rarely perform within budget.Standard bait & switch is to lowball a bid, then once they get started all sorts of things "pop up" that somehow their bid didn't cover.

Sure, but again securing $500,000 isn't difficult.That said, liability coverage is lawsuit protection coverage just like it is for you. 

From experience, switching to a conventional loan can help you remove PMI once you reach 20% equity, while DSCR loans are ideal if you’re focused on rental income.

I agree with complications of ownership when it comes to Land Trust, and it also does nothing for asset protection. 

That being said, anything can happen, but if you run your numbers accordingly, make sure that your contractor is trusted and do all the other stuff you'll be a little more protected than the next person flipping that does not do this type of calculation. 

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.So, the flood of new investors switched to buying Class B properties.

It is also more common in the private money space, to bait and switch.

Additionally, have a clear budget, factoring in potential repair costs, and ensure you understand the rules about earnest money deposits and closing deadlines.LLC for Real Estate Investing: Forming an LLC for rental properties can offer liability protection and may provide tax advantages, though the tax benefits are non-existence for rentals.