In the next twenty years so many unforeseen things will happen that we all need to maintain the ability to pivot to find the properties/assets which bring us to our goals and not get locked into a dogmatic approach to investing.

Soon after through unforeseen circumstances I had to spend most of this money on an emergency and was low on cash.

What if there is an unforeseen condition that the lender thought should of been included?

If maximum amount is exceeded use HomeStyle Renovation program.Contingency ReserveA contingency reserve equal to 10% of the total costs of the repairs/improvements must be established and funded for all mortgages to cover required unforeseen repairs or deficiencies that are discovered during the renovation.HomeStyle Renovation Loan: Product Overview Combines home purchase or refinance (limited cash out) with home improvement financing in one loan with one closingProvides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 50% of the "as-completed" appraised value of the property with a first mortgage, rather than a second mortgage, HELOC, or other more costly financing method.Funds can be used for repairs or renovations that are permanently affixed and add value to the property.Primary residences as well as second homes and investment properties are eligible.NO MOBILE/MANUFACTURED HOMESBOND/DPA NOT ALLOWED EXCEPT COMMUNITY SECOND DPA UP TO 100% CLTV.Required LTV's: Primary Homes:-1-4 Units-620 FICO Minimum (660 High Balance)-95% LTV 1 Unit-85% LTV 2 Unit-75% LTV 3-4 Unit- Minimum 680 Credit scoreSecond Homes -1 Unit - 90% LTV -700 FICO Minimum Investment Properties:-1 Unit - 85% LTV Purchase Only (75% LTV Limited Cash Out)- 720 FICO Minimum-2-4 Unit Investment Properties - NOT ALLOWED WITH THIS PRODUCT!

Pool Repairs are allowed.Improvements that do not conform to the surrounding neighborhoodAny new construction including room additions.Landscaping or similar site amenity improvements.Rehabilitation activities that require more than two payments per specialized contractor.Major rehabilitation or major remodeling.Require plans or architectural exhibits.Results in work not starting within 30 days after loan closing.Borrower is unable to occupy at closing or within 30 days.Television antenna and satellite dishes.Additions or alterations for commercial use.SFR conversion to a 2 unitAny structural repairs or renovations that are not foundation or roof repair.Parties listed below are not eligible to perform the work: BorrowerFamily MemberBorrowers EmployerSellerRealtorAny Interested party to the transactionMaximum number of contractors: 32 Draws, 30% initial and 70% final.Contingency Reserves A contingency reserve equal to 10% (or may be higher depending on scope of work) of the total costs of the repairs and renovation work must be established and funded for all mortgages to cover required unforeseen repairs or deficiencies that are discovered during the renovation. 20% contingency reserve required when property needs structural repairs, or where utilities are turned off.

I'm sure there are situations where people have gotten cold feet or have unforeseen circumstances, or whatever the case may be.

You need to have more equity for closing costs, monthly payments, holding costs, transition costs and the unforeseen expenses that will most likely arise during the process.  

Then ask yourself is the risk worth it and did I take out some cash or have cash saved  for unforeseen repairs or issues.

@Steve DellaPelle You should at least be able to do a final walk-through before closing.Being able to save a couple of weeks time is nice but you should just except that delays will happen--in all sorts of ways (closings, contractors, materials, unforeseen issues, permits, etc.)  

You need to always be able to access money for any unforeseen events.