.- Investment Lock-Up: While there’s a chance your funds could be tied up for a bit, if the property is well-designed and in a desirable area, you might see appreciation that allows for refinancing sooner than you think.Buying an existing property:- Less Risk: Existing properties come with a track record, so you can analyze their performance and potential more easily.

We also chose the wrong property management company who promised they could turn SECT 8 units easily.

If possible, I would look at the building to see how easily I could merge 2 spaces together, providing a tenant a 1,400-1,500 sf space complete with a small 150-200 sf office w/bathroom, and the rest shop space.

Now applying this to Philadelphia, you can easily go into areas of North Philadelphia or areas of SW Philadelphia just as examples and find properties that pencil as BRRRR's as easily as it is to pick produce out at a grocery store.

Do you have the knowledge and insight to handle any LT complaints and are you set up properly with your bank and security accounts and can easily collect the rent, etc?

If your friend recently made 3x his mortgage, but it was a spring/summer month, he could easily struggle to cover the rent in the fall and winter months. 

I made the mistake myself early on of canceling deals way to easily, now I expect extra costs. 

That could be found in the title search pretty easily. 

@Alex Sarnoff, Much of your uncertainty on these things can be easily addressed by your QI. 

@Diana Jing @Edward DawsonThank you for the feedback and discussion.Ed, I'm glad we were able to easily navigate your 1031 exchange and move you into some excellent cash flowing properties to increase your passive income!