One couple are each managers for two different companies and paid late a few months ago due to an unforeseen expense.

The issues where we have to decrease the LTV is when the property forms debt cover, lower than expected FICO, rates increase while the loan was floating or unforeseen issues that came up in title search.

And the way my wife and I look at it is that the unforeseen expenses and stress was part of our "real estate education", which has made us better, smarter, and more resilient property owners and real estate investors.

They are not a developer, and instead cater specifically to homeowners, but understanding these things ahead of time can save our clients money as well as the company headaches of having to pay for things that were not in scope and only having to charge extra for things that were truly unforeseen. 

He ended up close to $200K in rehab/financing costs due to an unforeseen foundation issue and very high carry costs due to not being able to sell quickly.

Do we have cash reserves to weather a downturn for any unforeseen reason (pandemic, anyone??)

However, when it comes to my mortgage, I have chosen not to prioritize early repayment, as I do not personally feel the urgency to do so.By organizing my money in this manner, I aim to establish a solid financial foundation, cater to short- and long-term goals, and maintain stability in the face of unforeseen circumstances.

Also, having a lot of cash reserves is a good way to fend off any unforeseen issues.Some backstory - the property I purchased at the end of 2022 was built in 1900.

Another option is to look at the property's assessed value on the county website and subtract the estimated cost of demolishing the destroyed home and any other cleanup costs and 15% unforeseen.

Of course there may be unforeseen circumstances beyond your control that may prevent you from moving in as soon as you like (ie, if the tenant fights the eviction), but in my case the lender didn't take issue with it.