Here's how we handled it:Carpet removal to prevent mold and speed dryingIndustrial fans and a dehumidifier brought in immediatelyDrywall and baseboard cut 6–8 inches from the floor (no moisture detected with a meter, but we didn’t want to risk it)96-hour drying period with equipment running continuouslyDrywall & painting contractor brought in for a full room (and full house, once we committed to a complete re-pipe)New carpet and padding orderedRe-pipe scheduled and completedThe Cost Breakdown:Carpet and Padding: $527.84Drywall, Trim, Paint, Finish Work: $2,200.00Paint Supplies: $87.70Full Re-Pipe: $5,242.20🔻 Total Out-of-Pocket: $8,057.74Yes, we’ve submitted an insurance claim and are optimistic about some coverage, but this situation reinforces a point I think many newer investors overlook: you must be well-capitalized.The Reserve Rule We Live By:We personally aim to keep a minimum of $10,000 in reserves per door.

Rent: $1400, HOA: $300, Insurance/Tax: $144, Net Monthly: $956, Net Yearly: $11,472, ROI: $11,472 / $106,000 = 10.8%Potential Condo #2: $115,000 purchase price, Rent: 1400, HOA: $260, Insurance/Tax: $150DSCR Cash Out Refi on Condo #1: LTV 75%, $86,000 Loan Amount, 30 yr fixed, 7.5% rate, Monthly Payment: Around $650, Closing Costs: Around 8-10k, Total Cash Left: $76,000Condo #1 After Refi: Money Left In: $28,750, Monthly Net w/ Payment: $306, ROI: $3600 / $28,750 = 12.5%Cash In Hand: $76,000DSCR Loan on Condo #2: $115,000 purchase price, 25% down: $28,750, after fees estimating $35,000 All In, $1400 Rent, $260 HOA, $150 Insurance/Tax, $650 Monthly Payment, Net Monthly: $330, Net Yearly $3960, ROI: $3960 / $35,000 = 11.3%RESULT: Total Monthly Costs: $2160, Total Monthly Net: $630 ish, Yearly Net: $7,560, Total Cash Invested $65,000, Yearly ROI: 11.6% CASH LEFT OVER: $41,000Could put the cash into a third condo or put into the S&P 500.Looking for some guidance on whether or not I should pull the trigger for some context:19 years old college student studying engineering (heavy courseload)Living in Chicago, Condos are in Ohio (I have family and friends out there)I work part time at a high end hibachi restaurant averaging $25-$30 an hour.My rent + utilities with roommates is $750 with room mates.The numbers work out, my main concern is whether or not Ill deal with large vacancy within the next 5 years, or a recession, and I have to cover the monthly costs on my own ($2,160) which is a lot and not sure if I would be able to keep that up for a long time if I am not working full time in the industry.

However, I've read that lands contracts can exist where I'm not given the deed to the home until the loan amount is paid in full ($155,000.)

You might get some sharper insight into the lending process, but you could also get that by partnering closely with a good broker or loan officer without taking on the full licensing burden.If you’re serious about scaling, it might be smarter to build strong relationships with multiple brokers, private lenders, or even consider setting up a fund or line of credit, rather than trying to straddle two hats (investor + licensed broker).

I strongly recommend going through a full loan workup with a knowledgeable lender prior to pulling the trigger on anything.

Mine was skipping a full inspection to “move fast.”

And agree it is probably best to do a full tear down.

On the other end of the spectrum you risk her failing to pay and slipping quite behind to where you have to evict, unless she just moves out.

Other places might let you assign contracts, but only if you follow certain rules and give full disclosure to both the seller and the buyer.

The seller pushed back hard and countered at full asking price.