Their explanation: "The overall theme for 2023 is that unexpected roadblocks and delays throughout 2022 put us behind our originally targeted timelines for infill (occupancy increases) impacting how quickly we could increase revenue."   

For flipping, focus on accurate ARV estimates and budgeting for unexpected costs, while for BRRRR, building strong relationships with local lenders that can help streamline your hard money into your refinancing.

Sometimes, it’s just a misunderstanding—maybe they thought the amount was prorated, or they ran into an unexpected issue.

Make sure you've got cash reserves for closing costs (around 2-5% of the purchase price, repairs and maintenance (aim for 1-2% of property value annually), vacancy periods (budget for 3-5 months of expenses), property management (if you're not self-managing), emergency funds for unexpected repairs.When choosing markets, look for those with stable job markets, growing population, and strong rental demand.

Whether the situation was an accident or not, owning the outcome is crucial.

My friend said his client nearly bailed when she found unexpected wiring issues behind the kitchen walls..apparantly the seller hadn’t touched that electrical since the Reagan era..but with a patient electrician who understood the local code and a carpenter who improvised a shelving trick in the diningrom, they ended up selling above asking.Flipping and building can get tricky, especially once you start thinking bigger.

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.

Any tips on avoiding unexpected costs or delays during rehab?

Having cash reserves gave me the confidence to move quickly on a great deal without losing sleep over unexpected expenses.

Liquidity: If this is your first or second property, prioritizing liquidity (by cashing out now) might allow you to seize unexpected opportunities, especially if you’re actively prospecting deals.Since you don’t have a deal lined up yet, you might explore options to minimize the gap, like prequalifying potential deals or using short-term financing strategies to bridge the 4 months.Good luck growing your portfolio!