We had about $3k in unexpected costs + holding costs +  a few changes that upped the renovation total.

Everybody who provided detailed "Rules"  and examples I do value and respect your input and take away that it would clearly be a good idea to plan more for unexpected expenses. 

Flipping is much higher risk short-term because any unexpected costs directly impact your end profit.

@Eddie SorrellIf those market rent #'s are correct, I would clearly explain this to them, and then recommend that you offer to do some minor upgrades to the units for those existing tenants.Put up a fresh coat of paint on the walls, pay for carpet cleaning (if there are carpets), do minimal upgrades to the lighting fixtures, and maybe even throwing in some USB outlets -all relatively inexpensive upgrades to your units that will help force appreciate the rent, even if they decide not to stay. 

Foundation beautiful, brand new windows, no leaking roof, outlets all brand new.

The inspection failed first time because of a vent that wasn’t covered, a couple of non-grounded outlets, and some chipped paint.

@Joel OwensYour post is spot on.Here's an example…  An 8 unit property in my target area came on the market unexpectedly last week.

I'm curious: Did closing cost you (unexpectedly) more because of that?

Built on top of existing back porch.Exposed wiring in the attic that lead to non GFI outlets in the soffit.Outside had not been painted in over 15 yearsWhat was done: Trash-out and DemoTear down Sun room and repaired porchProperly repaired electrical in atticPainted inside and outside of house.Painted roof (yes, you can do that)Replaced floors with new laminate and carpet throughout the houseReplaced old almond color switches, outlets and covers with new white onesNew lights and fans throughout the houseCompletely redone bathrooms with new tile, vanities, mirrors, lights.

Calculate your bottom line using 70% of ARV (After Repair Value).Do not spend more than (.7*ARV)-RC (Repair Costs)Example: House is appraised at $100,000 *if repairs are made*...7*100k = 70k.Repair costs are expected to be $25k. 70k-25k = $45,000 (DO NOT BUY THE HOUSE IF IT IS OVER $45k)Take another look at the ‘going rate’ of rent in your area, make sure your cash flow is enough to cover ALL costs and include a buffer for taxes and unexpected repairs.Look at the property yourself - try to eliminate assumptions.Have a trusted professional assess and confirm info about repairs that may have been overlooked.Look at how much work you can do on your own and compare it with contractor rates to complete all repairs.