Classic disaster which just tells us you bought too high.4.

I’m determined to reach financial freedom from a W-2 job by Dec. 2034.

Greatest financial pitfall when owning a rental property is vacancy time.

I don't know CLE per se (I'm based in STL), but I know the financial side of gut rehabs in urban centers of big cities.

A good rule of thumb is to have at least $5 to $10K in reserves per unit to cover these situations and avoid financial strain.Thank you for the reply and help!

Therefore, it is advisable for the client to consult with their CPA to receive personalized guidance tailored to their unique financial situation.

The real estate investing industry uses "Classes" to rank property performance risk, but there's NO agreed upon industry model:(Here's what we use for our Metro Detroit market:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Just make sure to look into the HOA’s financials, rules, and rental policies before buying.

I think new builds in such areas is a great idea, but financially it's very hard to make the numbers work since you will probably have a very hard time finding comps.

Consulting a tax professional or financial advisor familiar with these rules would be a wise step before making any decisions.