I would always add in PM like they said “just in case” and a vacancy percentage

Thanks,Justin Saunders

@Justin Windham Thanks for the note.

Jack,I'd suggest listening to BP episode 201 with Justin Stamper. 

So by your estimates, I'd probably need about 5-7K just in EMD and additional out of pocket expenses.

I plan on holding a 25% cash reserve fund on all my flips just in case things don't go as planned.

Justin is a great resource and I definitely suggest going to any SJREI meetings or meetups.

Thanks @Dmitriy Fomichenko, @Justin Windham, and @Carl Fischer.Sorry Dmitriy what I meant by loosing their shirts was by doing something wrong according to the IRS or loosing money due to being penalized by the IRS, I could have stated it much better.  

I always have my investors do at least a 7-10 day inspection period just in case we need to re-negotiate on the price after the contractor reviews the property.Once my contractor looks at the property they can kinda tell me what they think is going on with the property and also give me an estimate on re-hab costs we like to make sure the numbers make sense there is a certain profit margin we need to make on every deal.

We will definitely be changing common access locks, basement with laundry and storage area, just in case an old tenant kept a copy.