In reality, these are two very different things, but they add up to what we call “cash to close”.Let's define the difference between closing costs and prepaid items:Closing costsare one-time fees that you will ONLY incur if you purchase or refinance a property.

Until you spend 20k on paint and some new kitchen appliances, but the roof and foundation are still shot and the 100k ARV is more like 70k in reality.

to me I view an inspection contingency as you do it and if something is wrong you present it to the seller and say "hey fix this, reduce the price OR if it was major and really bad just walk away".If no inspection was done, then its unethical but reality is its not worth a seller to sue over it.

Understanding tenant rights, maintenance responsibilities, and potential challenges will prepare you for the realities of being a landlord.

Everyone likes to talk about suing, but reality says that no one is going to sue anyone.

Like "renting to section 8 tenants is actually really easy", "your agent is not on your team just connect with people like me doing hundreds of deals every day and use my team instead", that hood properties will have "15-25% net caps" for beginner out of state investors when in reality they will definitely lose money every month due to the rent not being enough $ to maintain a rental property, never mind all the tenant issues involved with this property class or the difficulty of managing them remotely... but he's done thousands of them just this week while sitting on the beach in Florida... 

The reality of real estate investing is that you only need two tools.  1- a Blue Pen2- a Note Pad.  

But in reality, reinvestment risk is real.In rentals, in today's market, there is basically no cashflow available after a BRRR and you introduce tenant risk into the equation and any longterm hold will have pretty continual maintenance.  

The reality is the really rich have coastal properties and they're not going to accept nothing when it's wiped away even if they have hundreds of billions, there'll be recourse.

Always happy to help.Jasper / PatTurning investment visions into REALITY in Phoenix, AZ - Ranked #1 for residential real estate growth and opportunity by PwC Thank you!!