Another thing to keep in mind, is if you aren't properly maintaining the units, and you own/manage a large portfolio, you will be dealing with a lot of unexpected service requests for repairs or replacement at the same time, each year. 

It is reasonable to expect that a bad market or unexpected costs will hurt our results, everything I describe above is designed to mitigate our losses.

Just a freak accident I think.

it is not really full-time because the rehab is executed by the contractor, also flipper can just use traditional financing before a rehab if a home condition is still acceptable.The biggest challenge for flipping is not tax but unexpected surprise in my opinion,both from market and from surprise condition of the house.

She had knee surgury before and she says now becuase of the way the accident happen she needs knee surgery again.

If something unexpected comes up in a job, we can reign it in quickly.

Both showed to court (unexpectedly).

Combine that with the fact that many mom-and-pop investors will consider many of the "unexpected" expenses (vacancies, maintenance, capital expenses, etc) as one-time anomalies and treat them as if they were off-budget, and you can see how people delude themselves into thinking that the operating expenses are lower than reality.Mike

One day a came by, unexpectedly, and found the tenant and his friends smoking marijuana.

All it would take is one accident and my insurance  policy decides not to pay and I get the shaft for not hiring one with insurance.