So, here’s the answerYou Start at the beginning and ask what your goal is.Real estate only consists of a few components. 1.

Nonetheless, the contingency budget is essential, as real estate projects often encounter unexpected costs.

From there, we subtract out our expected profit, scope of work from the contractor, closing costs on both the buy and sell side of the transaction including realtor commissions, any interest carrying costs, and a "reserve" for unexpected contingencies that might pop up.

Have a financial cushion because unexpected things pop.

Keep some cash on hand for the unexpected – like repairs or if the place goes unrented for a bit. 

The first consideration, in my case, was that I could afford the first loan since the property I took the loan on for the downpayment was rented and would still cashflow even after I took that loan.The other consideration I made was ensuring that the new property I was acquiring would also at least break even with the monthly payment for its loan.The third consideration was that I had enough money saved not for the downpayment but for at least five months of payments on both properties in case I couldn't pay the loan in case of an emergency (you never know if the new property will rent immediately or when you will have unexpected costs associated with either property, etc.)All three considerations were very important to me, but for my peace of mind, number three was the deciding factor.With this strategy, it could seem that I am making less money since I am racking up new debt on the rental I owned to begin with, but the way I see it, the appreciation I will get in a few years and the actual cashflow that I am still getting were completely worth it.

Cons of Keeping - older property, roof has been replaced but there will come a time when pipes start freezing/bursting with age and eventually will have to keep patching those or do a full gut that won't pay for itself.Pro's of Newer Property - Newer build, start time clock over again on key component repairs, higher chance of appreciation. 

By understanding the significance of renters insurance, tenants can ensure that they are adequately prepared for any unexpected events that may arise, providing them with the security they need to confidently enjoy their living space.Certainly!

One was a straight-up purchase, the other included a loan component.

If we get pics and video back, there would have to be something drastically unexpected for us to renegotiate the price due to an unforeseen bump in the rehab budget.When you have a few vetted buyers interested, you could schedule a showing for them to verify the condition.