Plan for possible sewer line replacement on wholesale purchase

[Dave Vona]

I recently completed my first out-of-state BRRRR. I purchased the property from a wholesaler, so I wasn't able to perform an inspection or sewer line scope prior to signing the contract. After closing I had a sewer scope performed and discovered a new cast iron line would be required. Once they started the work, the plumbing company found that the other branch lines in the basement also needed replacement. The total job ended up costing around $11K.

I probably should have included some rehab budget for the sewer line since it was a 1915 property. I was wondering how other people are accounting for a potential sewer line replacement when purchasing a property? If it's earlier than a certain year, do you always include an extra $10K in the rehab budget? It seems this could kill a lot of deals by making the rehab too expense for a BRRRR to work.

Fortunately, by the time I completed this property I was able to rent for more than I originally used in my calculation, and ended up cash flow positive after the refi.  But, I don't expect to be that lucky on every property.  I appreciate any input.  Thanks.