But following up with what Amanda said, you definitely do not want to stretch yourself too thin with money cause unforeseen issues are bound to come up.

For example if it is a 1970s property you may want to hold $300 a year in cash to account for unforeseen events. 5.

Once I had money at risk, I found that it is more important to be committed to seeing the project through, rather than bailing out because an unforeseen obstacle presented itself.

Anyway, I couldn’t imagine unforeseen expenses and roadblocks on a $6MM property.

I purchased a house at the sherif saleIt is in a neighborhood that the average house s 1500 SF selling at $120 per SFThis house is 2500 SFI purchased at $151k cashDue to a serious unforeseen issue my assumed rehab cost of $90k turned into 110kMy holding cost is 950 a month all expenses inMy issueFor someone with $300k would probably want to go to a different areaAfter broker fees my lowest I can sell to break even is $280kI tried $300/295/290 with no luckMy questionDo I take a loss and dip lowerOr Rent for $2200 a month After all expenses I will be getting a 5.5% COC return

Anything else unforeseen? 

Is that enough when setting aside money for capital expenditures, vacancy, and other unforeseen costs? 

The experience in the group helped to have the project completed but remembering to flexible with numbers and not to agresssive makes it easier to deal with the unforeseen costs that lay in the shadows of such a project.

Its basic stuff, flooring, paint unless something unforeseen comes up which is possible.

they cant sue because you are backing out of the deal because of unforeseen issues uncovered in the inspection.