The reason why it’s so expensive is because of civil engineering and utility upgrades required in the street along with half street improvements and other unforeseen costs that you run into. 

The primary reason is unforeseen circumstances.

We recommend that you plan at least a 3 hour window for closing in case there are any unforeseen delays.

But then I looked into the rates and terms for the refinance portion and quickly found that it wasn't worth it.Me personally - I view this as a win if you can be all in around $80k-$90k and sell this yourself as the agent.But realistically, there will be some unforeseen costs. 

@Bruce C.Yes, the rehab is only 20k more with 10% unforeseen cost.

I originally had money in the budget to change them but with some unforeseen water issues in the basement I used some of that money to make the repairs.

Factor in job loss (if you work full time), at least 6 mos of expenses and unforeseen issues with the property you would like to flip.

Do you have the budget for unforeseen issues that may come to light during the rehab?

Then if you run into problems with your job or medical issues or some other unforeseen circumstance your REI will come to a halt.

What can happen if you get past your inspection period but are unable to close with the bank, either due to lack of funds or some unforeseen event?