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. 

Moreover, in the software community, "hacking" is not black hat activity at all; it's simply the job of putting software components together to build something useful. 

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

You need to know what the current condition and life expectancy of all major components and appliances are.  

@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?

And frankly, all potential benefits need to be considered in the context of your overall financials situation - i.e. one on one consultation.As to the 100% bonus depreciation mentioned by @Yonah Weiss - it only applies to some components (5-/7-/15- yr property) and not to the structural improvements (27.5-yr property).

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.

On the PCR it says plumbing is damaged and sites a missing component the house will be insured escrow of 600.

To sum it up, it’s all about the relationship, and two key components to a successful relationship is reliability and trust....