These warranties provide a significant degree of comfort when anticipating unforeseen expenses.

Also, you will need some reserves/cash in case of any unforeseen repairs, on either property. 

Are there any clauses allowing for early termination or renegotiation due to unforeseen circumstances?

We would have liked to negotiated better with the purchase of the home (unforeseen issues) but we didn't have that wiggle room because of time constraint and a very hot market.

ARV - After Repair Value.So, the higher the project cost the slimmer the margins.  70% project cost to ARV leaves room for profit and room for unforeseen costs. 

Borrowing can keep cash on hand for any emergencies or unforeseen rehab costs.

You mentioned it's in good shape - just needs cosmetic repairs - so you shouldn't have to worry about any expensive, unforeseen repairs.

Even with a perfect plan unforeseen things happen.

They would be risking going out of business for unforeseen events that are impossible to track.

If your mortgage rep doesn't know that then they're not very good/experienced, worse they advised 6 months which is both wrong and based on no guideline of any sort.To be clear here, the advice about it being ok to move is due solely to the unforeseen job relocation.