Good for active investors who enjoy project management and renovations.Cons: Higher risk due to market fluctuations and unexpected renovation costs.

With all this talk about 1031 and individual situation(s) being the key component....Since this is a common analysis, there must be a comprehensive analysis tool already in existence. 

Financial risks, such as unexpected repairs or vacancies, can also impact your cash flow.

In my opinion, good partnerships always have a "trust but verify" component, and this is no different with Travis & Nader.

That said, we are not in a market where the average deal is likely to have enough potential return to justify paying 9-12% on a HELOC... unless there is a value-add component with a clear & compelling refi strategy later.

Same thing might happen with the vacancy if you have 2 months for lower end instead of 1 month for better area.I would use higher percentage for repairs and vacancy in lower end area when you compare CF for the 2 properties.Even in higher end area this year I had 2 evictions and one of them with 6 month vacancy and over 12k in damages, bad things can happen in both areas, the important thing is to keep cash reserves so you can get over unexpected expenses.

Always, always, always have a reserve because there will always, always, always be unexpected costs.HOW MUCH TO RESERVE?

As someone who has a tendency to spend excessively and live paycheck to paycheck, the lockdown measures implemented during the pandemic unexpectedly helped me stabilize my financial situation.

As indicated we ran into multiple unexpected issues but also it was our first time rehabbing a unit that was old enough to have lathe and plaster (whether built in 1901 or 1920s).Did we make a mistake re-doing the entire plumbing and electrical rather than just what was necessary?  

If not, going with a single-family home or a duplex could be a good option.For larger investments, you'll need at least six months of reserves to cover any unexpected issues.