Sure you got to look for the unexpected, but “if” is a big word.

I would advise adding 20% to your budget as contingency for the unexpected and make sure you're not going to have any moisture seepage issues before building everything out..

On a typical six month loan, that works out to about 11% of the loan amount, or about 7% of ARV.Yet on the third hand some HMLs want to see some percentage of the deal in your own cash, regardless of the numbers.Many HMLs require you to do the work first, get it inspected and then get reimbursed for the repair costs, if those have been included in the loan.And you will want to have enough cash to cover any unexpected problems.If your underlying question is "how can I do a fix and flip with none of my own cash" then I will say that is very, very difficult to do.

If, after running the numbers, I felt there was enough of a cushion to handle unexpected occurrences AND walk away with a healthy profit (I would say $20k minimum clear) then I wouldv'e considered it.

If you want to bid without due diligence I would offer low enough to have room for the unexpected.

If you buy a house to rent out you will inevitably need a slush fund to pay for the unexpected hot water heater failure, etc.Once you get a few wholesale deals under your belt you will understand the market better, have met a number of other investors(check out your local REIA to meet them) you can learn from, and better understand alternative methods of investing to move forward.Keep asking questions and reading posts on BP and you'll have a wealthe of knowledge.

(I spent $4,000 in repairs on my rental last year for an unexpected repair....it just happens and you need extra $ for that kind of stuff!)

Compared to getting something unexpectedly which creates a memorable moment.

These are oftentimes things that aren't obvious at the initial analysis.. like what's behind the walls.. and unexpected things that pop up.

If you stretch financially to make another purchase then come into an unexpected repair.