Hi all,I'm thinking of getting a fixer-upper multifamily property to house hack but am afraid of the costs, especially the unforeseen costs of doing this and how difficult, stressful, and time-consuming it may turn out to be.

If I elect to use a 203K FHA Loan, and a contractor reveals unforeseen conditions during his renovation, will the 203K be adjusted to cover this?

Yes, you need cash reserve for unforeseen events and I do have cash reserve for all my rentals. 

Maybe you could spin the situation where it would fit the somewhat vague definition of "unforeseen circumstances."

So there are 100% financing programs available from HMLs however most either require you to have a great track record or that the property all in be at 665% of less of the ARV and if that is the case they do require you do have a nice reserves account set up for interest only payments and possible unforeseen repairs as they will not give additional rehab funding.

For members who have done their first deal, whether a flip or a rental, in the past couple years: what were some of the biggest unforeseen challenges you faced?

The personal reserves would cover unforeseen personal situations (lost job, medical emergency, etc).

But as prices rise in smaller cities, especially in the Inland West and Sun Belt, economists and Realtors warn there will be unforeseen consequences, and it could take years before enough housing is built in these areas to alleviate price pressures.

Contracts that we enter into can be enforced, generally, but when a contract becomes impossible to perform or where an unforeseen burden exists for either party, not contemplated at its making the court may set a contract aside. 

Also, need to leave roof for maintenance and other unforeseen things.