Unforeseen situations such as buyers bailing on the deal or lenders not qualifying buyers are out of your control and will delay the sale of your house by months as was seen in this deal.

Living on the property helps with this because you are on property as the manager and you do not have your own rent or mortgage along with any unforeseen expenses that come up. 

4- If renovation cost / cap-ex turns out to be higher for some unforeseen reason, can the GP require investors to kick in additional capital?

However the total cost for acquisition and rehab will be $4M, so that gives me only $300,000 so hear is the question....Given the unforeseen issues with the city and the building condition I think I can get the owner to give me 90-100% financing.

Lots of unforeseen's and for me would only make sense if I had 5-10 of them so I can hire someone to manage them for me.

Those cheap homes sound good but one unforeseen cap-ex issue could derail your entire timeline.

I'd passNot enough there for me to have confidence that deferred maintenance and unforeseens wouldn't eat up your profit.

You're right - they're asking $330k plus I'd want $20k for upgrades and unforeseen repairs.

The numbers above aren't terrible, but don't leave a lot of wiggle room for unforeseen capital expenditures (then again, it does meet the "$250/unit/year" Cap Ex savings goal).

Or you can hire a contractor to deal with it all but expect a fair amount of unforeseen costs and bumps in the road.