It’s common for new investors to underestimate CapEx on 80–100-year-old properties.

Let’s say the irs determines the cost seg was off 10% and I am paying 25% total income taxes, the error amount seems fairly small (2.5% of the initial depreciation amount).  

Many lenders have a seasoning requirement of 6 months (or less, but 6 months is very common), so if you started now, you'd hit 6 months by the time you'd close. 

Learn the neighborhood market, local rents, common or most popular or highest NOI rent style STR, LTR, MTR - Co-living etc. 

A common approach is to talk to your insurance agent and lender first, since lenders may require a refi or only allow a transfer to your own entity if you remain personally liable, and insurance must correctly name the LLC (and you) or you can get burned on coverage. 

Between aggressive HOAs, special assessments becoming more common across Florida, insurance issues, and buildings that no longer qualify for financing, what looks affordable on paper can turn into a financial trap fast.

NOT a good look for Open Door”my error above.

The challenge you're hitting is common at this stage: scaling efficiently without overleveraging or getting squeezed on financing.With your portfolio and cash flow, it might be time to look at portfolio lending or DSCR loans that allow you to recycle capital without the heavy rate/fee hikes that come with low down payments.

From what I’ve seen working with experienced investors, the choice between private money vs. hard money usually comes down to a few very specific, commonly used criteria.Experienced investors usually weigh a mix of speed, certainty, and structure, and the right choice often depends on the deal’s timeline and complexity.Hard Money tends to win when:Speed to close is criticalThe borrower needs higher leverage or a more structured rehab draw processThe deal requires a lender who is used to assessing value and risk quicklyThere’s a need for predictable underwriting and a clear, repeatable processPrivate Money is often preferred when:Flexibility matters more than structureBorrowers want lower fees or a more relationship-based arrangementThe deal doesn’t require renovations or complicated funding mechanicsThe investor has long-standing trust with the lenderMost seasoned investors tell us they choose based on certainty of execution—who can reliably close fast, fund clean, and stay consistent from one deal to the next.

I’ve noticed a lot of misunderstandings around note investing—especially from people new to it.
What are the biggest misconceptions you’ve seen, and what’s actually true in practice?