While the unspent money can be used to invest in other properties or use it as a reserve in case something unexpected happens.

In picking the right syndicator, those fees are well worth the trade off of time & unexpected expenses, and often outperform individual real estate deals.

You will want to have cash reserves or access to cash in the event you have a large unexpected expense come up, such as a roof replacement, HVAC, etc. 

Depreciation is one of the largest expenses to offset income, so it can result in unexpected tax burden.

@Bob RandolphI am sorry your investments took an unexpected turn.

I was unexpectedly in a wheel chair the first of last year.

Whatever your rehab budget is multiply it by at least 1.5 because even when you double check your numbers, unexpected things happen that can cost an extra 500 or 1,000 here and there and it adds up.

CapEx expenses from unexpected differed maintenance or massive rehabs needed that were not planned.4.

Great Depression. market disruptions. a trillion dollars a year deficit spending. rumors. panics. personal bankruptcy. a lot of other unexpecteds. 

Unexpected delays .