Some unexpected vacancies.

With a trusted team, you might avoid delays or unexpected costs.Advice: If you lean toward BRRRR, build a solid local network.

Homeownership comes with unexpected expenses, so having at least 3-6 months’ worth of living expenses saved up is generally recommended.

- What’s a safe contingency budget percentage to include for unexpected expenses?

Think about the extra income you need on top of that to pay for retirement(if it's just quitting work early),  medical bills, and unexpected expenses.

A solid exit plan reduces the risk of default.Check Their Liquidity: Even experienced borrowers can run into trouble if they don’t have reserves to cover unexpected costs.

And also try to prepare a buffer for unexpected issues (there's always something!).

Since the BRRRR strategy relies on recycling your capital, it’s typically better to stick to the minimum needed for favorable loan terms.Also, consider leaving a cushion in your HELOC or reserves for unexpected rehab costs or delays.

Reno's STR demand has been unexpectedly strong and rewarding.

This reserve amount represents roughly 2–3 years of projected repair costs, which might be a conservative approach, but it gives us a buffer for unexpected, high cost repairs when they pop up.With a larger portfolio, the reserve pool wouldn’t need to grow proportionally, as funds and repairs can be balanced across properties, allowing costs to offset each other over time.