Late-night unexpected phone calls from tenantsB.

There are often unexpected expenses, and you want to make sure you have enough cushion to get through those surprises.Given the current low inventory environment, I would say securing a good deal is challenging (though not impossible) in general.

Meanwhile hardly any emphasis is placed on the loan administration and even more importantly the relationship component of lending.Far too many investors, particularly those just starting out, are being conditioned to seek out the “easy” lending choice rather than invest time and energy required to cultivate meaningful relationships with lenders who truly value the borrower/lender relationship and are interested in assisting you grow.

It appears you are focused solely on the financial components of the project without understanding the insurance and liability factors of self-performing the project in the manner in which you propose.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

I just wrote him back and said hey we get into contract I can run some of this stuff down but not going to spend hours figuring out all the fine details on all the components of a new build ..

A bad area on the other side of town that unexpectedly moved into my neighborhood after federal law enforcement decided it was time for a crack down on gangs, who just relocated to my hood.A bullet through my bedroom window.A drive-by shooting 1 block over that I only woke up to at 4am after hearing a woman screaming outside her house.A friend managing similar properties across town clubbed on the head as he stopped by to collect rent, waking up hours later in the stairwell, pockets emptied. 

I think assumptions are easy to make due to this being all text, but my mind is absolutely not made up which is why I am posting. i raised the concerns with my sponsors around the high IRR and fees and other points you all made and she countered with the air bnb component being the reason.

When you prioritize your guests and pay it forward, you’ll often be rewarded in unexpected ways.

And don't forget the other component of real estate investing you lose in an exit - depreciation.