I agree that proper reserves/cash flow are what it takes to get you through pretty much any challenge. 

I am a newbie investor, who is trying to invest from out of state and for me the most challenging is getting a good team of people set up (i.e. property manager, contractors, loan officers, accountants, lawyers, etc.).

Challenging times ahead for certain.

So, if you are not looking to sell within a year, this would be a good approach.

These days I checked several threats in this nice Bigger Pockets forum and found several people have already asked about investments in Costa Rica.I know how real estate investing is done in the U.S. and I also know, that you can't use the same approaches and strategies 1:1 for Costa Rica (some strategies just don't work here).In Costa Rica I am specialized in high-yield investment deals (8%+) in the San José area and also in high-end luxury properties with great ocean views and good rental income potential in luxury tourism.One of my projects right now is providing a larger investor client/partner of mine with 8%+ yield p.a. real estate investment deals (in the 200k asking price area per unit) in great neighborhoods in growth zones in and around San José.

It would not surprise me if many of these houses are rental houses.The challenge you will have is that houses in this neighborhood sell for about $60 per square foot and the cost of new construction is significantly higher. 

As an out of state investor it can be challenging to compete with the locals, especially in the better or becoming better areas.

Getting financing in this price range is proving to be a greater challenge than I had hoped.

I have an extreme interest in flipping houses, I know that this process is not as lavish or easy as they make it seem on Flip of Flop, but it is a challenge that I feel I'm ready to take on.

-Do I need to have a property in mind in order to even approach a private lender or bank for loans?