Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

Its a 2800 square foot house that needs some pool work and dry rot but most likely nothing over $20k. 

Worst one was opening up a kitchen wall and finding water damage that had rotted out the studs looked totally fine before demo.

., spray paint over wood with visible mold, partially covering rotted wood with plywood, etc).

First, I found the property which was going to rot away for the next few years while the guy from California worked on other projects.

Home Improvements:Here are some pending home improvement projects in the priority order I've come up with:Grading to mitigate intense backyard erosion (no gutters) which caused fencing to lean significantly (diy for $300)Landscaping for curb/backyard appeal ($700 diy)Termite stations with baith for 12 months ($1200)Fascia/ Trim replacement ($3000 trim is rotting and I don't want it to get worse and hit the beams)Gutters ($2,000)Fencing ($4,000 I need to get very stable posts that will withstand problematic clay soil on a slope)Roof ($7,000 it's the OG 2007 roof and every inspector I've had come out says that insurance probably wouldn't pay for a new roof because it's so old) Rodent exclusion ($1,200 evidence of activity in attic)HVAC replacement ($5,000 been paying for frion to be refilled that's leaked out once a year for 2 yrs but home warranty won't replace the actual unit, they do have a discount though) This has worked so far and I may do this another year to address the things above first.Long story: From 4/1/23-1/1/24 I either rented out or Airbnb'ed the two guest rooms while working remotely.

I know a friend buying who had to get even a few rotted clapboards fixed before the loan would close.2.

The biggest elm tree was rotted inside about 2 ft down, so it needed to go, but now I have to retroactively convince the city this.

It’s not rotted out floors, basement water issues, leaking roofs and the such. 90% of the time the technician knows the problem and the solution before he leaves his truck. 

Evidence that repairs that were in the rehab contract were not done (hole in new flooring revealed rotted joists that were to be replaced.) $20k estimate in repairs and replacement.I was never notified by the old PM as to any of this, I have no idea how long the property has been like this, I have a tenant contract from the PM but I don't even trust that.