Highest form is an extensive gut-out, remove all interior non-load bearing walls and basically a new floor plan, nothing is salvaged, new roof finish (minor repairs on sheeting), new siding finish, about 3 months to complete (from contract signing to turn-over) with 1 month allowance for unforeseen events.

I feel like this is the best market for me based on the entry cost and returns, but do not want to be shocked/surprised by some unforeseen issues in the future.

Contingency Reserve: Allocate a contingency fund as a percentage of your total budget (usually 10-15%) to cover unforeseen expenses.

With courts also closed, evictions are a non-option for an unforeseen amount of time. 

Sure there could be some really bad news which is unforeseen that causes declines, but I don't think we are seeing a bubble nor do I think we are really close to a cycle peak...yet.I guess what I am trying to say is...its not as good a time as it was a few years ago, but I expect its a better time to buy now than a couple years from now.There are some lake view properties that are pushing new lows, that is what I am interested in right now.  

I'm trying to do as much due diligence as possible to protect my investment and assets if the real estate market crashes in the future.For buy and hold strategy, is it enough to make sure cash flow positive (actually not easy in my area) and account for enough unforeseen expenses?

However, I've got a large LOC extended off a free and clear property to satisfy any unforeseen expenses.

Now this is all theoretical because once you buy the property there are ALWAYS going to be unforeseen expenses that you couldn't have factored in.

You may also want to assume this maintenance fee as how much it will cost you to hire a property manager (say 5% or so of monthly rents).2) Your capital expenditures can be grouped into 2 general categories: A) Unforeseen big-ticket items that will break and need to be replaced (e.g.

This approach will help you plan and execute your fix and flip project more effectively while minimizing unforeseen costs.