Hi Anish,I always like to tell investors that its hard enough rehabbing when your within a 5min drive from the property lollolThere are always unexpected issues that arise and than need immediate attention.

The IRR might still look impressive if the investment is highly levered, but there might be little – if any – margin for error for an unexpected major capital item.

Beyond that, unexpected things can happen and they are not the fault of either party.

It is a horrible truth about our country but consider if one of them gets sick, a freak accident etc...

It's important to have enough reserves to cover not just the negative cash flow, but also unexpected expenses that might arise.While rents may increase over time, it's not always guaranteed.

Then, after I moved here to the USA, met my wife, and got married, she brought our first SFR deal to the table, almost by accident.

If youre willing to squeeze into a 2 bed condo about $3k a month would be a great deal This is sad to hear but not unexpected, and I've seen it before.

This isn't unexpected -- we are 11 years into a bull market that historically only lasts about 6 years.  

Once you have met your cash flow needs, maybe double, you can re-assess your next goals.Appreciation is never guranteed, even it looks like it is right now, unexpected things can happen.

I have used renters insurance as a renter, example, I accidently dropped my gun safe down a flight of stairs while moving and the safe damaged the hardwood floors bad enough that the entire first floor needed new flooring because they couldn't match the floors, my renters insurance covered the damages in full with no deductible.