What if you buy the property and discover you suck at managing the tenants and property?

Keep in mind @Mario Morales that they take premiums, invest them so there is a profit component on invested returns, and hence amplifies how far the $ can spread on payouts. less than stellar returns and expanding claims, yes, rising premiums is a certainty. 

But, that being said, there are the numbers on paper and then there's the psychological component.... the human behavior component. 

We'll still look at a multifmaily deal here and there, particularly if there's a retail component, but not currently our main focus.

My gut tells me that Texas, particularly Austin and Houston, could be where the next wave of growth and expansion occurs, mainly driven by strong business and job creation trends.Here’s what I’m looking for in my US investments:Free-standing houses with a good land component, at least 3 bedrooms and 2 bathrooms, and in well-maintained condition.Budget : Will have to keep a factor of safety for the current exchange rates of AUD.USD = 0.68 so will cap our budget at 250K- 300K.Yielding over 6%, with a slight cash flow positive outcome, while also offering medium-term capital appreciation potential.Holding for at least 5 years or more, with a view towards steady growth.The long-term goal is financial independence, reducing reliance on salary-based income, and building assets during this accumulation phase.Debt reduction is on the horizon—looking to consolidate and start winding down debt within the next 7 years.If anyone has experience investing in the Texas real estate market or any tips on navigating US property investments, feel free to share your thoughts!

Sometimes, you can discover excellent contractors on Facebook groups dedicated to your local area.

Back then when we “flipped” a contract to an end buyer and hence didn’t complete the purchase ourselves, it was the result of an opportune circumstance rather than a defined strategy; we negotiated an offer fully expecting to complete the purchase ourselves (unless something negative was discovered).  

They value how it is to live in a home over the infrastructure and mechanical components.

Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

The second year we started questioning where our cash flow was and eventually discovered they had been embezzling 10s of thousands of dollars from us during the 2 years we’d owned the properties.