Update #1I was super excited to find a possible 3 flat building, which was newly listed on MLS.But my excitement quickly turned to horror as: Unknown property conditions of 2 occupied unitsOlder, possibly original, electrical wiring that needed updating immediately (vacant unit had 1 electric outlet per room)Seller is deceased, estate now held by sister who lives in New York, who has never visited buildingPossible water/roof damage as warping and thick cracks appeared in stairwells/wallsOlder, leaking windows Questionable plumbingBIGGEST DEAL KILLER: EXPOSED ASBESTOS WRAPPED AROUND ALL PIPES IN BASEMENT!!!!

This had been sent to us when Sage could not close in time for unknown undisclosed reason. 

With my contractor, I can get a lot of repairs done for less than $1000I rely on my 27+ years of experience and only buy at the price where I budget for the unknown

(whether the author has researched the disclosure laws and knows for a fact this is true or whether it's just common sense is unknown) I could see defense lawyers continuing to have a real field day with this because so much is based literally on subjective interpretation and intent or lack thereof - both of which ALWAYS become the exclusive province of all white collar cases involving fraud.

The concern lots of investors have are the unknowns down the road that have nothing to do with investing.

In a perfect world yes makes sense but real estate and tenants are complete unknowns.

The big unknown is repairs.

@Aaron Hunt I would agree if this were an ordinary theft with an unknown person committing the crime.

This lead me to BiggerPockets, Rich Dad, Poor Dad, and my rapidly expanding attempts to learn about real estate.I know we are in a multiple offer situation (i.e, freaking Austin area) and we may not get it because I won't go over asking price, but I am excited to have taken this first step into the unknown to try to build wealth.

This can be a powerful way to offset taxable income.5) Self-Directed IRAs and 401(k)s:While not entirely unknown, self-directed retirement accounts are still underutilized by many real estate investors.