It’s a strong strategy but also full of pitfalls, so you need your CPA’s guidance on what hours count toward participation and how to stay compliant, especially in case of an audit.

This makes it a lot more accessible for people who don’t have full cash on hand but want to lock in equity early.I’ve partnered closely with a local developer who’s become a good friend and guide, and I’m now starting to help others from the U.S. explore options for low-barrier, high-upside real estate investments — especially those priced out of markets like LA or Denver, but still looking to build equity and cash flow.If you’re curious about investing in Mexico — or wondering how to start, avoid pitfalls, or compare it to U.S. real estate — I’m happy to share what I’ve learned.

Obtaining umbrella coverage is fine, but focus on identifying potential premises liability pitfalls at your properties and proactively eliminate them.

If your name’s not on the deed, you're just a tenant with a liability, not an owner.It’s wild how common this kind of thing is, too.

DSCR loans are also worth looking into since they focus more on the income potential of the property rather than your personal finances.As far as pitfalls, I’d just say to budget a little extra for those “minor” updates because they have a way of snowballing once you get started.

You should either buy with a DSCR up front if the property is eligible and self fund your rehab or hard money for acquisition, do most rehab to common areas with the exception of additional walls prior to refinancing into a long term DSCR loan. 

Between doing my own deals and now seeing hundreds of transactions a month from the TC side, I’ve been able to spot a lot of the common pitfalls (and shortcuts) investors run into.I’m here to share what I’ve learned, answer questions, and hopefully provide value whether you’re just getting started or scaling up your operation.

Flipping has too many tax pitfalls and there are too many unknowns - tariffs increasing prices, Days on Market, declining sales prices, etc.

Also what pitfalls are there to look out for?

While qualifying as a real estate professional for tax purposes is possible, there are many pitfalls.