The overruns weren't caused by the Land Bank or thir requirements, they were due to inevitable surprises when you do major renovations.Rcommend NOT focusing on Land Bank properties, instead look at everything on the market and buy the best BRRR property you can find.One last thing, many of the Land Bank properties are in Class D Neighborhoods:( VERY difficult to make these work as rentals or flip.If you'd like to chat more, DM us and check out the Interactive Map of Metro Detroit with color-coded Classes on our website - to make better decisions:)

In the early days, our biggest risks were around construction — budgets, timelines, and unexpected surprises behind the walls.

The Smart Investor's Secret Weapon: ReservesIn a market where interest rates are high, deals are tighter, and uncertainty seems to be the norm, reserves are one of the most underrated forms of protection an investor can have.We often talk about cash flow, returns, and growth — but what truly sustains a portfolio in challenging times is the ability to withstand the unexpected.

Also, get a very clear and written scope of work from your contractor so surprises are limited once work begins.

Quote from @Michael Santeusanio: Closing costs can creep up and surprise even the most prepared investor.

The real cash drain hides in your operating expenses (OpEx): repairs and maintenance, reserves, utilities, pest control, legal fees, property management, HOA dues, and unexpected turns like a broken HVAC or a non-paying tenant.Ignoring these costs is one of the main reasons rookies bleed cash after their first deal.

Pretty common for divorce to create an unexpected probate requirement.Trust the title company... open an estate, have a PR/executor appointed, convey the interest out of the estate to the heirs or directly to the buyer.

.- Unexpected repairs or inspection issues that eat into margin.Why it might feel more stressful:- Bigger financial exposure, you’re buying and holding real estate.- Delays can cost you real money.- More moving parts, especially if you're flipping multiple properties at once.Flipping is usually more stressful, but it can be more rewarding financially if everything goes according to plan.

Understanding this ahead of time helps with planning and avoiding unexpected tax bills.Starting strong with these basics can save you headaches later and help you maximize the tax benefits of your investments.

Start small, run conservative numbers, and expect delays or surprises during the rehab since it’s part of the learning curve.