Here are some challenges that first-timers often encounter:Time Creep: Renovations often take longer than expected.

Are the kitchens and bathrooms updated?

I will also convert the extra 2 kitchens to wetbars/kitchenettes and fully remove 220 plugs for stoves.  

Here’s the situation:Key Project Details:•Property Size (pre-renovation): 250 sq. meters (2500 sq. feet)•Purchase Price: 250,000 EUR (1,000 EUR/sq. meter)•Renovation Costs: 750 EUR/sq. meter (includes kitchen, appliances, quality furnishings)• Loan costs (during renovation and renting): 350 sq. meters (due to attic expansion)•Property Size (post-renovation): 350 sq. meters (due to attic expansion)•Post-Renovation Layout: 2 separate apartments•Airbnb Income (24 months): 2,500 EUR/month/apartment (= 5,000 EUR/month)• Other running costs: 600 EUR/month•Projected Sale Price (after 2-3 years): 850,000 EUR (approx. 2,500 EUR/sq. meter)•Closing Costs: Negligible in Tbilisi•Real Estate Agent’s Fee: Typically 3%, but negotiable based on who hires themFinancing Setup:•Property Purchase Financing: 100% bank financing at 5.9% interest (bank has even financed 150% to cover some renovation costs in the past)•Renovation Financing: Our friend is offering to finance 250,000 EUR in cash for the renovationsProposed Partnership Structure:•Work Involved (on our side): Full renovation (10-12 months to complete), furnishing, and property management through Airbnb until the sale (2-3 years)•Profit Split Proposal: 60% (us) / 40% (friend providing renovation financing)Questions for the Community:1.Does the proposed profit split (60/40) seem fair, given the work we would handle (renovation, furnishing, property management)?

Seems to be competing opinions on whether an LLC or other entity structure set-up is a must for a first time real estate investor. 1.

Upgrades like in-unit laundry, new flooring, or upgraded kitchens can increase perceived value without major investments.Rent out Extra Space→ If possible, look for ways to increase income from the property.

Most recently, I worked with a client out here in Colorado that let their parade of homes house (from 25 years ago) in a gated community literally fall to pieces; mold between window panes, water infiltrating the kitchen due to lack of roof repair, patio pavers crumbling apart, downspout misplacements that caused water infiltration into the living room....just a mess. 

Many first-timers don't, and then they are CRUSHED when reality bites down hard.Trust me: I was one of them...Be very careful!

For reference, I had a renovation that we redid ALL plumbing from under foundation to all new kitchen and bath layouts.  

Quote from @Tim Delaney: @Marty Boardman thanks for sharing - just to be clear you put all your expenses related to the house under one capital improvement account t (Wip) and do not bother breaking them down into categories like kitchen and flooring and paint, etc?