After the flip that taught Paul a ton of lessons, he set some time aside to set up parameters for investments he wanted for his company. For houses he wanted to hold and rent out, he wanted a simpler rehab that was mostly cosmetic. Very soon, one came up. A friend of Paul’s called him saying he wanted to move out of state to start a business, and he wanted Paul to buy his house. They structured a good deal for both of them. The deal fit the criteria Paul desired: It was well maintained, needed a little bit of work and a good cleaning and would be ready to rent. By January of 2021 the property was purchased, by February 1st the tenants had moved in, and then the great freeze of February 2021 came and all the pipes burst. So without planning on it, Paul had taken what he thought was a simple deal and applied for the graduate school of hard knocks. Thankfully, insurance was involved and he got the property up and running again after 3 months of water mitigation, plumbing, sheetrock, flooring, and negotiations with insurance. Finally, the rental was all ready for the tenant to move back in. Risk is always a part of real estate investing.