Risk that you will not enter good data, resulting in a possibly seriously wrong results2.

That’s where long-term success begins.While cost is certainly important, placing the wrong tenant can result in far greater expenses than any upfront savings—lost rent, property damage, legal issues, and unnecessary stress.

Deals usually don’t fail because the idea was wrong, they fail when details slip or follow-up breaks down.

Originally posted by @Cody Malave:@John Teachout How do you protect yourself from a liability standpoint if something were to go wrong?

again I may be wrong but just a personal opinion.

You can't go wrong with a househack/ live-in flip combo IMO and it doesn't have to be a major flip, it can just be some cosmetic upgrades converting a dated old dumpy property to one that is move-in ready for a retail buyer and "cute".

Hey Brent - sorry, I was reviewing my response to you and see something went wrong.

@William Coet I suspect you are looking in the wrong location.  

Get it wrong and you end up owing them.  

This is one of those situations where looping in a CPA who understands real estate and related-party transactions is critical, because getting it wrong can create tax or audit issues later