Unknowns are not deal breakers as long as they’re treated as real costs upfront.Ebonie, what does one look for to understand if the title risk is unclear?

Vetting property managers from afar is really about reducing unknowns and forcing clarity early.

That doesn’t include cushion for the inevitable unknowns. 

Either scenario is unacceptable.Had we not actively managed the management company ourselves, we estimate we would have lost over $3,000, in addition to having unknown individuals occupying our home.Homebase charges 20% of rental income, which is a substantial fee.

Any development I’d pursue would require: conservative leverage, sufficient reserves, and flexibility on timeline, so that the project can be operated through market cycles rather than rushed to exit.To your point about existing assets having fewer unknowns—that’s exactly why I’m still very open (and arguably biased) toward acquisition where I can buy documented cash flow, operating history, and known risk at a sensible basis.

My biggest fear with them is the unknown...what future assessements will you see and will it sill cash flow at that point.

She stressed to think of the mindset, how there is 0 certainty, 0 knowing, that the kind of person comfortable with such was not aligned with my desire for the most responsible type tenants who'd have way too much unease with such unknown situation of M2M. 

Unknown = risk.

I work with many investors, and have done myself, who are looking to get rid of the continuous unknown of maintenance fees and get into a new property that needs no capital improvement for over 10 years. 

(If the appreciation happens...)However, you shouldn't be planning based upon unknowns - meaning appreciation.