But before you start doing this, make sure you have enough financial reserves in case of unexpected expenses.

Not only the cash flow, but the unexpected appreciation.

Just one of an infinite number of unexpected issues that can come up and cost tens of thousands.  

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Learning to pick the property manager better and deal with unexpected repairs hands-off.

In an era marked by rapid economic changes and uncertainties, the real estate market has showcased an unexpected level of resilience.

This year, the company I was working for was acquired. As a part of the acquisition, all my stock options were accelerated and paid out as cash through payroll. This payment will leave me with about $600,000 in W-2 ...

Perhaps the property doesn't appraise as well as you projected or there are unexpected operating expenses or cap ex that's incurred in year 1?

We have bought 3 houses at auction - the best of which went smoothly with only about $10,000 in unexpected expenses (new drainfield for a septic) and we netted just under 6 figures.  

Renovations can uncover unexpected issues, so having an extra 10-20% of your estimated budget set aside can help you manage unforeseen costs.Start Small: If it's your first time budgeting for a big renovation, consider tackling the project in phases.