They build in extra padding, so the unexpected does not derail the entire project.When creating your budget, make a room-by-room outline of work needed and estimated costs.

I've only posted a few times as I've been trying to "simulate" deals as I find them - but haven't jumped on anything yet.I originally considered condos but they are out of the question now due to HOA irregularities and unexpected circumstances.

It looks good on paper, but a single unexpected expense will ruin you.

I make a lot of money that way.For me to syndicate there has to be a big value add component to the property.

Fall & Spring HVAC Service Target Date: April and October This service can aid in early detection of costly problems and save the cost of expensive, emergency service.A/C Service Includes: Check condenser coil, adjust operating pressures, monitor safety controls and starter capabilities, clean or replace filter, adjust blower components, calibrate thermostat, measure for proper temperature differences, clean condensate drain, tighten electrical connections, measure voltage and amperage on motors, lubricate moving parts.

If you are planning on not having other partner PMs, at least have a network of other PMs that can take over during unexpected emergencies or vacations.   

Due diligence on the sponsor is one of the most important components of a syndicated investment decision.While I can't speak for what other sponsors do, I can directly answer your question relative to my own personal experience.  

As mentioned before, watch out for unexpected large expenses that might have been overlooked on the initial walkthrough.

I want to know what the current condition and life expectancy is of all major components and appliances is. 

If there is barely enough capital to cover closing costs, you are one sneeze away from pneumonia (vacant month, unexpected repair, bad debt, move out, etc.).