If you run out of money, you may be forced to sell the property when you are mid-rehab and take a loss. This is why it is good to have a healthy reserve account and a plan for what to do when finances get tight.
Not taking the business of real estate investing seriously can be the defining moment in your investing career. There will, at some point, be a wake-up call.
Real estate investing is a semi-passive investment, sure. However, there are things you need to do to keep up with the maintenance of your properties. If you let some maintenance items start to slip, it can be a cascading effect.
An ideal graph of any business venture’s profit should look kind of like a hockey stick. Whereat first it sticks to either no profits or negative. Then it has a long handle portion that goes up and to the right. Increasing overtime.