Are there any contingencies or reserves for unexpected costs?

See attached Excel summary sheet.Investment Highlight89% Physically OccupiedSupply Index in a 3-mile radius of 6.8 SF/Capita, 5-mile radius of 7.7 SF/Capita, and 10-mile radius of 8.3 SF/CapitaAdditional Income generated from 4 mobile home lots and 1 mobile home (Not Verified, as thus not included in underwriting assumptions)Key Underwriting AssumptionsDown Payment 25% of Purchase PriceEstimating a CAPEX/Repairs cost of $150,000Estimating Operating Reserves of $10000Stabilized Vacancy and Concessions/loss to lease at 10%Using a cap rate of 7.23%Key Demographic DataTotal Square Footage 21,130 Supply Index: 6.3Population 3,338 1 Yr.

If mixed in with your deposits and reserve funds, you may accidentally spend money you shouldn't have.

Have strong reserves out there.  

It's advised to keep cash in reserves for vacancy and maintenance so 70% down payment might give you enough cash flow and you have some reserves.

STVRs if run efficiently and marketed with 100% direct reservations should have 50%+ margins and ConC returns of 100%+ year after year.

There are programs out there for owner-occupied properties that don't require proof of income, but expect to need a hefty down payment (30%+) and reserves. 

The most followed path is to save enough for down payment and reserves then get a loan. 

Some common OVERLAYS are:Credit ScoreNot using Rental IncomeSeasoningLoan MinimumsMaking us have more downpayment than neededNot using “After Repair Value”Limiting the number of loansRequiring more reserves than neededAnd plenty of others tooSo imagine you are trying to use the BRRRR method on a property and your lender states “We can’t use the ARV until after 12 months, we can’t refinance until after 12 months, we can’t use rental income until it is on your tax returns, your loan amount can’t be below $100,000, and we will require you to have 30% equity in your property”.If that was the case we couldn’t do the BRRRR method - ever!

When I said I get a 12% cash on cash return in Brandon, that's my net cash after paying property management, taxes and Insurance, mortgage AND putting money aside for a maintenance + Capex reserve.