Covid was something unexpected and the way the sponser deals with it and the communication with the investors is also important to note.

The worst thing you can do is be seen as an unreasonable and irritating component.

Come even the slightest ripple (an increase in property insurance, an unexpected repair, etc.) and suddenly you're drowning in a sea of negative cash flow.Also, are you including both professional property management and vacancy in your operating expenses?

We in our lease addendum have language that the property is X years old and may require components to be replaced which is not uncommon and no rent reduction or hotel will be provided.

In Mass, that means that all components are double-wall, non-corrosive (fiberglass). 

Private money lenders are a key component in the fix-and-flip market, facilitating a dynamic and fast-moving segment of real estate investing.

Hi @Guy Idan, like others in this tread said, is important that you "vet" the Syndicator (aka sponsor) - every component of the syndication is important (the property location and the local economic drivers, property class, the loan type, property management company, the sponsor, etc.) but I would say this is more as a bet on the jockey than on the horse.

Additionally, covering unexpected repairs and meeting lender requirements can pose obstacles, especially for newer investors. 

Here's a case study on a 6-unit apartment building that shows just how much you can save by breaking down your property into its components for faster depreciation.

When issues come up, and eventually they will, such as vacancies or unexpected maintenance issues, this is where we've earned our reputation.