Insurance protects your property from paying out of pocket for damage, plain and simple.

Physically verify everything.

This included some landmark deals including Rockefeller Center’s $3.5B loan and Miami Beach’s Fontainebleau $1.2B refinancingAlternative lenders filling traditional banking gaps with short-term solutions which has already begun a cycle of consolidation that will likely continue and accelerate in 2025The Office Sector Divide:CBD property values are down 50.7% from 2021 peaksClass A office properties seem to be in their own vacuum of prosperity with trophy properties commanding premium rents ($100+ PSF nationally, up to $247 in top markets) with strong occupancyHybrid work continues impacting older building valuations which have not faired as well, but this may begin to rebalance as more companies are instituting mandates to return to physical officesChallenges & Opportunities:$1 trillion in loans maturing by 2026Interest rates up from 3.5% (2021) to 6.74% (2024)Experts such as AEW’s Michael Acton and Blackstone’s Nadeem Meghji see the best entry point in the last 15–20 years and we agreeMarket Outlook:Current market conditions present unique opportunities, with inflation-adjusted prices at historic lows and yields at decade highs.

Risks include market fluctuations, property damage, tenant issues, and unexpected expenses.

But I've hit the annoyance factor most reach in their 50s when owning rental properties about 20 years sooner.I am at work coordinating inspections and post inspection, was the appraisal done and could you email it to me, this lender gave me a 3.25% rate while you locked me at 4.0% LOL all of this and I haven't even started receiving a dime of cash flow.Illiquidity is the best feature of passive real estate investing, the 2nd feature being diversification (among asset types, exit strategies, sub-strategies, geography, risk, sponsors, etc.) you cannot do this if you are actively managing rentals.When you are 65-75 years old planning your estate, do you want to leave your heirs (who probably don't know or don't want to know anything about real estate) a bunch of physical houses, tenants, property managers, mortgages, online logins, LLCs, etc.

Renting out mobile homes can be a great source of cash flow but they’re notorious for being damaged significantly by tenants and tend to need a good bit of repairs before renting out to the next tenant.

Despenas LLC aka SDIRA Wealth aka Modern Day Living Real Estate LLC are all scam companies that inflate housing prices in the neighborhood only to sell eviction-prone extremely damaged homes with no intent to perform the agreed-upon inspection repairs and send you through multiple corporate hoops after purchase only to completely ignore you immediately after the sale.

I use a channel manager (OR) and it has damage protection built in.

Even new machines can experience issues, and when those issues mean that water is leaking all over your laundromat, you’re going to want to respond to that quickly.It may not be that your laundromat requires that many hours in a week of actual work, but the times your laundromat will demand your attention can often happen unexpectedly.In a typical week, we would work 7-10 hours on our laundromat, either being there physically or working remotely.

Also, note that it is hard to accurately judge an area from afar based on exterior physical characteristics.