There can be unforeseen hotel taxes, required business licenses, etc.

I'm hesitant, because I want to reach a nice nest egg of about 5-7K to pay for down-payment, closing costs, and immediate unforeseen issues (i.e. job loss). 

I did make some minor additions and changes to the scope and there were some unforeseen expenses (although most of those should not have been surprises to an experienced contractor).

The borrower's business model may run into serious problems that are unforeseen at this point in time resulting in 100% failure of the business."

My main concern in lacking capital is any unforeseen repair costs that may arise.

I'm wondering if there's any additional limitations I could add in the lease to protect myself against unforeseen consequences?

BIG ONE HERE.Our state, (Calif) has the following ruling on deposits, 10% or $1000, whichever is LESS.Our state also has a clause for requiring contracts, I believe it to be they must be in writing when over $600, verbal contracts for less must include 3 parties.I've seen handwritten quotes I can barely read, make sure you know the extent of the job, and potential unforeseen issues.Fires, (electrical) don't just happen, they are created, and often times take awhile to show themselves.A good tradesman is worth his weight in Gold, we are all just trying to make a living, if you want cheap, you'll get cheap.

Here are some things that have come up in my rehab that were unforeseen in the many walk throughs with our 203k consultant, 5 GC's and me:Plumbing system had been frozen EVEN THOUGH the property was winterized.

My mom starts telling me about what am I going to do when things break, or if unforeseen issues pop up?

Unless it's a period detail that is popular and worth saving, you can't ignore stuff like that in your budget.I've had to make corrections to my rehab plan and budget (which originally included the demo of the tiles), due to some serious unforeseen plumbing issues that became apparent after the REO was de-winterized.