I often deal with newbies so they tend to make these mistakes:1- underestimate the time rehab will take, often due to weather delays or delays with local officials securing permits or delays with local building inspectors coming to inspect rough-ins thus delaying installing drywall and finishes2- Over improving the properties by building them out as if it were to be their personal dream home, which means they go over budget and eat into any profits from selling plus cause more delays with changes3- Over price the flip so it sits on the market too long and their carrying costs sky rocket which eats into any final profit4- under estimate monthly carrying costs like water service charges and garbage collection charges- these will still be there even though water may not yet be turned on and the cost of electricity the contractor needs and will use monthly5- get in trouble with the local building or planning dept. due to over building on a lot or tearing down so much of a house as to then have it viewed as a new build that doesn't meet todays lot line set back requirements and then have a stop work order issued for months while they argue that its not a new build which only increases carrying costs and decreases future flip profit or really causing the profit to become a lossThe ones I see most successful are the first timers who buy a 3 or 4 unit to rehab and reside there for 12 months and do it on an FHA 203k loan to be honest.

@Mike McCarthy This will be my first rental and probably keep it as long as it cash flows but I read that if you keep a rental longer than 10 years then it will start to need more expensive repairs and eat into your profits.

@Albert Ellis Jonathan Klemm is a great resource as well for contractors since he helps run Nest Egg.

If your transfer/refi/closing costs are going to be in the order of $5 or $6k, then that eats up nearly 4 years of the "saved" interest payments. 

.:-)I'd stay out of high tax states (they are generally poorly managed and that hurts your bottom line, people are leaving those shores and the taxes will eat you up) and I'd look for a property as close to where you live as you can find.

Have your cake and eat it too.

You may have to eat the loss.

An active investment could go smoothly, but based on your experience it could also eat up a lot of your time. 

Anything over 4 is typically commercial.If this is one building with five rooms (An actual B&B setup) then this is a full time job for someone to manage.I don't think the numbers are that great for a significant amount of work.I'd normally recommend someone start off with at least one Ling term rental before jumping into STR'S.Also as we've all seen recently to have all your RE eggs into the STR market migjt not be the best thing.

So I’m sorry but I would eat this 3 of non payment.