People becoming bankrupt with repairs.

Yes, 2020 is littered with corpses of arbitrage investors like yourself who lost everything and went bankrupt.

This could cause him to go completely bankrupt at some point.  

With a corporate-backed lease or corporate guaranteed as we call it even if the operator goes bankrupt, the corporation that owns KFS (YUM!

@Keetaek HonSince Redfin, open door and Zillow all basically went bankrupt trying to find deals automated - I think that is a good case study that AI and trying to automate real estate deals is not something that has been proven to be very successful.

It is great that some folks do really well with arbitrage, but I know at least 3 people that went bankrupt and have pending lawsuits from owners trying to recoup their rent.

A house hack is like that beginner run (but BRRR'ing, wholesaling, and out-of-state investing are more like double black diamonds).The fact of the matter is: real estate is often a high-stakes endeavor, and the more advanced strategies (like BRRR'ing, wholesaling, flipping, out of state investing, etc.) can easily bankrupt a beginner when they're executed poorly.Plus, HH'ing is an ideal strategy while you're young...when you're in your 20s/early 30s, it's pretty common to live with housemates (or to live in a duplex next to your tenants), but this arrangement becomes much less feasible once you get further into your 30s/40s (especially if you start a family).Now, having said all that, house hacking is not necessarily easy (if it were, everyone would do it!)...

He said that one of the main issues is that the buyer didn't have the financial means to personally support the property, meaning he couldn't afford any unforeseen capital expenditures or if there was a high vacancy rate that this property would bankrupt him.

A house hack is like that beginner run (but BRRR'ing, wholesaling, and out-of-state investing are more like double black diamonds).The fact of the matter is: real estate is often a high-stakes endeavor, and the more advanced strategies (like BRRR'ing, wholesaling, flipping, out of state investing, etc.) can easily bankrupt a beginner when they're executed poorly.Now, having said all that, house hacking is not necessarily easy (if it were, everyone would do it!)...

A house hack is like that beginner run (but BRRR'ing, wholesaling, and out-of-state investing are more like double black diamonds).The fact of the matter is: real estate is often a high-stakes endeavor, and the more advanced strategies (like BRRR'ing, wholesaling, flipping, out of state investing, etc.) can easily bankrupt a beginner when they're executed poorly.Now, having said all that, house hacking is not necessarily easy (if it were, everyone would do it!)...