Here are several steps to help avoid a negative cash flow when investing in rental property:Research the rental market: Look for properties in areas with high demand for rental properties, to help ensure steady rental income.Conduct a thorough cost analysis: Estimate the expenses associated with owning and managing the property, including mortgage payments, property taxes, insurance, and maintenance costs.Calculate the potential rental income: Determine the expected monthly rent for the property and compare it to the estimated expenses to ensure a positive cash flow.Consider property management: Hiring a professional property management company can help you collect rent, maintain the property, and handle any tenant-related issues, all of which can help avoid a negative cash flow.Stay diversified: Investing in multiple properties can help spread out your expenses and reduce the impact of a vacancy or unexpected expense on your overall cash flow.Monitor and adjust: Regularly review the performance of your rental property to ensure you're maintaining a positive cash flow, and make changes as necessary to maintain profitability.

Say there is an accident on your rental property and you are sued.  

Stick to a simple, clean and neutral design that will appeal to a wide range of buyers.Plan for contingencies: Be prepared for unexpected expenses that may arise during the rehab process.

.* Be prepared for unexpected events and have contingency plans in place for emergencies or unforeseen circumstances.* Stay up-to-date with local laws and regulations regarding real estate investment and landlord-tenant relationships.You can successfully invest in real estate long distance and build a profitable portfolio of properties.

Personal savings, and lucky unexpected money from a previous job.

That's how I started also, by accident - Lol I didn't know what househacking was even.

Every freaking one says something like :"I know this call comes completely out of the blue..." or "I know this is completely unexpected"or "I know this is surprising.."

That doesn't mean there can still be unexpected costs there certainly can and thats why I would like at least a little more wiggle room.

I can work with that too, accidents happen.

Tenants will pay their own utilities.My objective is to repair and update whatever is necessary now so that I (ideally and hopefully) only need to concern myself with cosmetic fixes and insurable high-dollar freak accidents as much as possible over the next 20-40 years while holding these properties.With that said, do you think it makes sense to go ahead and replace the 1999 furnace now prior to refinancing so that (1) I can capitalize on the contractor's discount, (2) I don't run into having a costly replacement sooner than later with tenants in place, and/or (3) it might help up my refinance numbers?