There are also many unforeseen issues that could come about with the new construction, although issues are possible on any kind of deal of course.

I have learned to be sure and include "unforeseen" costs in the budget moving forward and learning to cut costs in areas I can.

Either of these, costly unforeseen repairs or it going way over asking, would pretty much kill the deal as a flip. 

As a general rule, any good financial manager, advisor or accountant will tell you to have 6 months in liquid assets to cover any unforeseen damage, maintenance or bills if you lose your job (you never know). 

Block out the first week of March too, there can be some unforeseen delays. 

We always recommend a forced appreciation strategy to mitigate against unforeseen circumstances.Aloha! 

If a newer mom and pop investor acquires a property that has unforeseen issues or runs into problem tenants you're going to be facing problems that are much more expensive and difficult to solve and will set you back in your overall goals for your portfolio. 

One of the biggest unforeseen costs and challenges is how difficult the municipality is to work with.There are certain realities, you can not get past. 

With the market as hot as it is, distressed sellers will likely be in distress due to a large, unforeseen maintenance issue arising.  

Having a good margin gives you the ability to deal with the unexpected, whatever it may be:  seller concessions, unforeseen repairs, not getting your asking price, etc.