It can put you at a higher risk of foreclosure if you face an unexpected vacancy or repairs.

Risk assessment is a critical component of the underwriting process.

Any challenges or unexpected hurdles you've encountered?

For Flips:at least 50% of liquid cash for unexpected expenses or cost overruns of the property’s rehab budget additional to downpayment financing, closing costs and improvement funds.Too often you hear investors blaming the realtor for their poor decisions.

This includes budgeting for initial investments, calculating potential returns, and having a contingency plan for unexpected expenses.Real Estate is a vast industry, and with dedication, continuous learning, and ample networking, success is within reach.

Figuring out the funding component is fairly straightforward from there. 

YES, you will miss something and have unexpected expenses, OR you will have a bad tenant experience with damages you are not able to recover from them.

Challenges like unexpected renovation costs and tenant turnover can arise but with proper preparation and management, you can achieve great returns.

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.

They are also simpler over the life of the unit to maintain because there are just three main components instead of four(+) with HVAC.