You always need to leave enough in the piggy bank for unexpected repairs, etc…Keep this in mind with your deal search.

The HVAC system failed unexpectedly, adding unforeseen costs.Lessons Learned:Thorough Inspections: Always include major systems in the initial scope.Contingency Budget: Set aside funds for unexpected repairs.Flexibility: Be ready to adapt plans quickly.These lessons highlighted the importance of thorough planning and flexibility in Partner Driven's real estate investments.

You make an great point, to keep stashing cash aside to prepare for the unavoidable "unexpected" costs of physical REI.

While it's not uncommon for buyers to back out of contracts, especially in real estate, it can be particularly challenging when it happens unexpectedly.

More likely, they will be late the next month, and the next and an unexpected event will make them short again soon, and the another.

Unfortunately, I haven't gotten any pictures yet.Here's where I'm at financially: I had $10k in savings, but after some unexpected hospital bills for my dad, it's looking more like $8k now.

This is an unexpected expense on top of a complete renovation plan for the winter.

Budget for Unexpected Costs:Always have a contingency fund for unexpected expenses.

Less Competition - High-interest rates and market uncertainty may deter some flippers, reducing competition for distressed propertiesMarket Demand - In some areas, there remains strong demand for renovated, move-in-ready homes.Price Negotiation - Sellers of distressed properties may be more willing to negotiate in a high-interest rate environment.Cons:High Carrying Costs - High-interest rates increase the cost of borrowing, which raises your holding costs (interest payments, taxes, insurance, utilities).Market Volatility - Real estate markets can be unpredictable, and high-interest rates may lead to slower home sales and declining prices in some areas.Renovation Risks - Unexpected renovation costs and delays are common risks in any market, and high-interest rates exacerbate the financial impact of these issues.Financing Challenges - Securing financing for both the purchase and renovation can be more difficult and expensive in a high-interest rate environment.Mitigation Strategies:Thorough Market ResearchAccurate BudgetingEfficient Project ManagementFlexible FinancingExit StrategyFixing and flipping properties in today's market can still be profitable if approached with caution and thorough preparation.

Include a contingency budget for unexpected issues.