However, for investors looking to diversify, vacation rentals can provide attractive, short-term income opportunities.Challenges and Considerations for American InvestorsWhile Germany offers many advantages for real estate investors, there are also certain challenges to be aware of:1.

@Pratik as @Neil Narayan mentioned, cash flow is very challenging due to the property values, property taxes, and soft rental market.

Challenges?

Could you pl explain a bit what are the flaws in my approach.

I’d appreciate any input you can offer on everything from financing to construction challenges.

The location hasn't had a lot of demand which has made it challenging for him to find an end buyer. 

I think it will be good to look for a balanced approach.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I'm sure they are out there but this is just a rule of thumb and I would rather use J Scott's approach when he analyses deals outlined in his book.You factor in your desired profit as a cost and you work backwards.

This approach could be the fastest and most cost-effective way to regain possession of the property and prepare it for new tenants.4oShe put in the post that it's located in Edmonton, Alberta, Canada.