If you invest in developing other properties/acquiring other properties, can you handle the risk if you are less "cash rich", should some unforeseen situation arise? 

That industry has continued to be careful in lending practices so unless an unforeseen economic collapse happens in the next year (worse than the covid recession so far), there's not going to be a huge wave of defaults.Summed up, I see no evidence of a collapse, but with some boosts of inventory from new construction prices may get to be a little less crazy over the next year. 

And if underbid due to unforeseen issues, there is room for one party to feel taken advantage of.

You can easily pay $200-300K for a house and be losing money every month due to repairs and unforeseen expenses like property tax (much higher than California) and Home insurance (also much more $$ than anywhere in Cali).

I would like to have as much capital on hand for any unforeseen costs or setbacks.2.

I would definitely recommend being conservative with your numbers and make sure the cash flow is still appealing with higher, unforeseen expenses.P.S.

It is zoned accordingly and all the preliminary conversations with the city, the ADU project looks like it would be a go barring any extreme unforeseen issues.

Hi Robert, I agree with @Mitch Messer that it helps to be conservative with your capital expenditure estimates on condos because of special assessments and also other unforeseen HOA issues.

Unforeseen construction problems, poor management, weather?

Is there any laws, restrictions, tips or tricks to make this first property great deal or are there unforeseen challenges that we may run into?