Imagine this: You are a beginner Latina investor and your first flip is ready for appraisal, your budget’s tight but on point… and then you get the call—your house is on fire. Literal fire. Not the metaphorical kind we like to brag about on social media.
This was Lindsay’s reality, a fellow out-of-state rental property investor. In our first episode, of the Real Estate Jefas Podcast, we got real about the scary side of real estate investing. This is something people don’t always post about. You hear about cash flow and equity, but not the phone calls that leave you shaking in your car outside work.
The Fire That Almost Made Her Quit
Lindsay’s first BRRRR deal (Buy, Rehab, Rent, Refinance, Repeat) was going so smooth. She bought a brick home in Gary, Indiana for $35,000, budgeted a rehab of $33,000, and was expecting an appraisal of around $85,000. Perfect right?
Then the unthinkable happened. Her property manager called her at work with one line:
“There’s a fire in the house. I’ll call you back.”
And then—click.
Can you imagine? Your first investment, your blood-sweat-and-budget project, up in flames? And because Lindsay was investing out-of-state, she couldn’t just drive over. The fire, caused by faulty overhead wiring, damaged the kitchen, destroyed the doors, and caused major water damage from the fire hose—especially in the basement.
Even though the house had passed inspections (even Section 8!), Lindsay had to decide:
- File an insurance claim and risk getting denied future coverage?
- Or self-fund the repairs and keep it pushing?
She chose to cover it herself, paying $11,500 more for a full electrical rewire and interior repairs. Yes, that meant sacrificing some returns. But she saw it through—and it paid off. The final appraisal? $150,000. Way more than she anticipated.
When Nature Flexes on your Rental Property
And then there’s me—Violeta from MoneyChisme. My scary story? A flooding situation in Milwaukee, where I invest in three duplexes. One day, I get a vague email from my property manager:
“We’re responding to flooding. More to come.”
Cue panic.
My brain spiraled. Did I just lose all my properties? I don’t even have a job right now. I was ready to cry. But turns out, only one unit had water damage—a busted basement window let in rain during a rare 1,000-year storm. I ended up covering about $3,000 in repairs from my emergency fund.
And here’s the lesson…
Emergency Funds Aren’t Optional
Both of us had emergency funds, which saved our rental properties.
If you’re a real estate investor, here’s what your emergency fund should do:
- Cover unexpected repairs (pipes bursting, busted furnaces)
- Cushion from vacancies or loss of rent
- Cover 3-6 months of mortgage
Don’t confuse it with a savings goal. Emergency means emergency. Use it, and thank your past self for thinking ahead.
Real Estate Will Test You — Stay in the Game
Both Lindsay and I had every reason to tap out. But we didn’t. She got her full money back (and then some). I only lost $3K and avoided long-term damage.
So yeah, bad things can happen in real estate. But guess what? We’re still here. Still building. Still growing. And so can you.
Related Episode:
🎙️ MoneyChisme Podcast Ep.103: Floods, Flat Tires & Vet Bills: Why You Need an E-Fund
