Holding costs on buy and holds

[Ken Nyczaj]

Curious if anyone adds their initial holding costs on buy and holds into their closing costs. I’m accounting 8% to vacancy each month, but it seems completing a rehab the first month or two after closing, additional holding costs should be added to cover PITI and other expenses. The 8% vacancy wouldn’t be enough to count for the initial upfront costs especially if it takes two months to rehab before the unit can be rented. Anyone have experience or suggestions on this? Thanks.