For the insurance deductible on the claim, it depends on the nature of the claim: if it’s for a repair, it’s deductible this year; if it’s an improvement, it needs to be capitalized.

But they know they need adequate reserves to sustain them if/when there is a lawsuit or eviction to cover lost rent, repairs, etc.

We have repaired and not replaced roofs when appropriate. 

Biggest key is to make sure you have the right teams in place and boots on the ground to help you manage / inspect / repair the property.

I am using 5% for repairs, 10% for cap ex, 10% for vacancy, and 10% for property management.  

It might be against the law to repair vehicles or have them in the yard, on the grass, etc.

A couple months of vacancy or repairs could put you behind the eight ball.You could always sell the duplex and take the equity and roll it into something bigger.

During the pendency and term of this contract, Seller shall not change any existing lease, enter into any new lease or make any substantial alterations or repairs without the consent of the Buyer.

Homes in need of repair or renovation can still be found at competitive prices, creating significant upside for those willing to invest the time and resources.Rental Market Backup: Investors also have the benefit of Indianapolis’ strong rental market as a fallback option.

When financing a large-scale fix-and-flip project, assessing and managing risk is crucial for success.Risk Management StrategiesContingency Budgeting:Set aside a contingency fund (typically 10-20% of renovation costs) for unexpected expenses.Time Management:Develop a detailed project timeline to keep renovations on track and avoid extended holding costs.Partnerships:Collaborate with experienced contractors and real estate agents to mitigate risks associated with repairs and market positioning.Insurance:Obtain comprehensive insurance coverage, including builder’s risk insurance and general liability insurance, to protect against unforeseen events.Exit Strategy:Always have an exit strategy.