The bank will likely look very unfavorably to you having none of your own cash in the deal.

Being new, I'm sure there's much I could learn more to avoid unfavorable lending.

Lots of unfavorable tax implications.

I have been reading Long Distance Real Estate Investing - David Greene, and came across an interesting tidbit of information: Your first 10 (1-4, 5-10) property loans are Fanny Mae insured, after which your loan criteria become more unfavorable (variable rates, stricter credit score requirements etc.).

I will share my "Most Expensive Lesson" in the comments.To kick things off, here are ten examples of expensive lessons or mistakes in real estate investing:Underestimated Repairs: The classic pitfall where the cost of repairs and renovations far exceeds initial estimates, impacting the overall budget and profitability.Tax Liens: Failing to account for or being unaware of existing tax liens on a property can result in unexpected financial burdens.Contractor Liens: Not settling payments or disputes with contractors can lead to liens against your property, complicating sales or refinancing.HOA Fines: Overlooking or violating Homeowners Association (HOA) rules can lead to significant fines and headaches.Bad Loan Products: Opting for loan products without fully understanding their terms can lead to unfavorable financial conditions, such as higher interest rates or unfavorable repayment terms.Ignoring Zoning Laws: Investing in a property without a clear understanding of local zoning laws may restrict its use, affecting your investment strategy.Overpaying for a Property: Lack of research or getting caught in a bidding war can result in paying much more than the property's worth.Neglecting Due Diligence: Skipping thorough inspections and background checks can uncover unpleasant surprises after the purchase is finalized.Poor Tenant Screening: Failing to properly screen tenants can lead to unpaid rent, property damage, and costly evictions.Underestimating Market Risk: Not considering market fluctuations can lead to investments that don't pay off as expected, especially in volatile or declining markets.We've all been there in one way or another, facing setbacks that seemed daunting at the time.

@Christopher Price @Jeremias Rodriguez - Would you still recommend a STR(lots of competition) /MTR(unfavorable owner protection) for a new investor in Greater Washington area and are there any good areas to consider?

They went on to enumerate examples such as finding the property, negotiating the deal, signing any contracts etc. as being in direct violation and therefore spoke unfavorably as the retirement vehicle altogether as a means of holding real estate.I would love to hear your thoughts as to whether this is true as I was under the impression that the self-directed nature implied the very opposite.Best,Patrick

I thought about this, but it always seemed like unfavorable terms for the next investor.

I would try to negotiate it a little perhaps by mentioning how a judgement would affect their ability to get future rentals etc as landlords will look unfavorably on it.

Although I would stick with the cashflow until your return in equity goes unfavorable.