I'd say one of the biggest challenges is exactly finding deals that actually make sense financially, especially with today's interest rates, insurance costs and property taxes..
Finding properties isn't necessarily the hard part. It's figuring out whether the numbers really work. You can find a property that looks great on paper, but once you account for maintenance, vacancies, CapEx, financing costs, and unexpected repairs, the cash flow can look very different. Here it becomes an art and you need to spend time analyzing deals..
Another challenge is comparing financing options. Different lenders have different rates, fees, down payment requirements and DSCR criteria, so it's not always easy to compare them side by side (ps. use chatgpt or any other ai to compare their rates).
Personally, I try to run a detailed analysis before making an offer, stress-test different scenarios and work with property managers to validate rental assumptions.