People all of the time, "over estimate" the opportunity and "underestimate" the cost and challenges in doing a profitable flip.

As many cities require insurances for any rental properties, this will be very challenging for market being affected.

Yes that seems high but without a breakdown of costs for the 13k it's challenging.

2) How did you structure your first deal, and what challenges did you face?

@John Kim @Travis Biziorek is 100% correct.S8 really isn't difficult, but it's not the answer to everything that the self-proclaimed "gurus" make it out to be.With S8 tenants, you're just trading one set of challenges versus direct paying tenants.When we advertise a rental, we take the best tenant we can find, immaterial of their source of rental funds.You want to be careful investing in the City of Detroit because there are a lot of "crooks" trying to sell you Class D properties dressed up to look like Class C or B.Connect with us or Travis for more info!

You can try and fight it but does not mean you will be successfulI would also be curious to see what your property insurance looks likeFor me this is just another example that home prices are gonna eventually have to soften as between taxes, insurance and Interest rates home affordability is very challenging

This usually works where there is a lot of garages.If you have the means to solve the financing challenges a tic/coop can be another sophisticated value add.Note this is just some value adds.  

Flipping on a land lease with high HOA fees = challenges that could impact profitability. $700/month HOA fee may deter buyers, elongating your resale timeline, and could push your ARV closer to the lower end of your range.

However, I emphasized the importance of open communication and encouraged them to reach out proactively if they foresee any challenges with future rent payments.

Lending terms will be important here.I'd say the biggest challenge thus far is making sure I feel comfortable managing this remotely, as it's located about ~150 miles east of Dallas.