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

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.

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

That being said prepare for unexpected expenses. 

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

He told me that the only time in his 30+ years that the scammer paid off is when the crook unexpectedly died and had a large life insurance policy that was able to pay off all the creditors.

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.

Many investors hesitate to start their next fix-and-flip project due to barriers like limited funding, uncertainty in market conditions, lack of experience in estimating renovation costs, or fear of unexpected delays and expenses.

Emergency Maintenance: Regular maintenance is on the owner, emergency repairs might be charged to tenants if they caused the problem.By proactively managing these expenses and clearly communicating responsibilities to tenants, property owners can maintain their properties effectively while minimizing unexpected costs.

Reserve enough cash to cover 12 months of holding costs, rehab overruns, and unexpected delays.